2026-1-20 16:14 |
An international crypto crime ring laundered over $100 million through South Korea just as the country eased restrictions on digital asset investments.
South Korea’s customs agency revealed on Monday that it had uncovered a large-scale cryptocurrency laundering operation.
The Korea Customs Service (KCS) said three Chinese nationals had been referred to prosecutors for breaking the Foreign Exchange Transactions Act.
The suspects are accused of illegally funnelling nearly 148.9 billion won ($101.7 million) through disguised transactions, bypassing currency controls and masking their activity in the local financial system.
Yonhap News Agency@YonhapNews·FollowCriminal ring nabbed for alleged laundering of 150 bln won of cryptocurrency en.yna.co.kr/view/AEN202601…
7:47 am · 19 Jan 20260ReplyCopy linkRead more on TwitterCrypto funds routed through local walletsAuthorities said the scheme took place over nearly four years, between September 2021 and June 2025.
The suspects allegedly bought crypto assets in several foreign countries and transferred them to digital wallets inside South Korea.
Once in the country, the assets were converted into Korean won and distributed across a wide network of domestic bank accounts.
This movement made it difficult for regulators to detect the activity, especially as it avoided conventional currency exchange processes and used decentralised platforms.
Fake transactions hid cross-border transfersTo make the flows appear legitimate, the ring disguised them as everyday financial dealings.
These included claims for cosmetic surgery payments from foreign patients and tuition fees for overseas students—both of which are common forms of international remittance.
By blending with routine cross-border transactions, the scheme was able to avoid triggering alerts from monitoring systems designed to detect irregular flows of funds.
New rules open crypto investing to firmsThe discovery comes during a major policy shift in South Korea’s digital finance landscape.
Just last week, financial authorities lifted a long-standing ban on corporate cryptocurrency investments.
Listed companies in South Korea can now invest up to five percent of their equity capital in the top 20 digital coins by market value, provided these are listed on one of the country’s five main exchanges.
The move ends a nine-year restriction and signals a wider acceptance of cryptocurrencies in the formal economy.
South Korea aims to attract more blockchain investment and tech innovation through these policy updates.
Regulators move to tighten financial checksAlongside the investment reform, South Korea’s National Assembly passed amendments to the Capital Markets Act and Electronic Securities Act.
These updates pave the way for the legal use of tokenised securities and smart contracts, providing a clearer structure for blockchain-based finance.
The timing of the policy changes and the crackdown on illegal flows highlights the dual direction of the country’s approach.
While new opportunities are being created for legitimate use of digital assets, there is also increased pressure on enforcement to shut down unlawful transactions.
With more crypto activity flowing through legal channels, South Korean authorities are expected to sharpen their tools for tracking, compliance, and transparency.
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