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South Korea Arrests 23 in USDT Laundering Ring Tied to Cambodian Phishing Syndicate

Police say the operation highlights a larger push to stop fast, cross-border money flows that use stablecoins to hide stolen funds.

Overview

  • Investigators say 23 suspects were arrested for converting about 16.8 billion won into USDT and moving the proceeds through domestic and overseas exchanges on behalf of a Cambodia-based phishing network.
  • Police linked more than 11,300 accounts to the scheme and uncovered 265 voice-phishing and investment fraud cases involving roughly 25.7 billion won in stolen funds.
  • A separate sweep detained 33 people accused of running illegal USDT-based currency exchange services that handled about 6.3 billion won in client transactions.
  • Authorities obtained pre-indictment seizure and preservation orders for roughly 650 million won, have referred suspects to prosecutors, and say the suspected organizer remains at large under an Interpol Red Notice.
  • The National Police Agency has set up a dedicated task force and is cooperating with blockchain analytics firms such as Chainalysis, a move that could spur more cross-border probes and tighter oversight of unregistered exchangers.