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South Korea Refers Three Suspects After Uncovering $102 Million Crypto Laundering Ring

Customs officials say the network masked cross-border flows as tuition or cosmetic surgery bills, prompting calls to tighten anti‑money‑laundering controls.

Overview

  • The Korea Customs Service traced about 148.9 billion won by following crypto bought overseas, moved into South Korean wallets, converted to won, and dispersed through numerous local bank accounts.
  • Three Chinese nationals were sent to prosecutors for alleged violations of the Foreign Exchange Transactions Act after a probe covering September 2021 to June of last year.
  • Investigators say clients paid via WeChat Pay and Alipay before funds were converted to crypto abroad, helping the ring avoid early detection.
  • Transfers were labeled as routine expenses such as cosmetic surgery fees, overseas education costs, trade payments, and duty‑free purchases to blend into normal remittance patterns.
  • Prosecutors have not publicly detailed arrests, asset seizures, or formal charges, and authorities have intensified surveillance and policy discussions on applying stricter Travel Rule and inter‑agency coordination.