South Korea Busts $101.7M Crypto Fraud Ring Involving 36,684 Suspicious Trades
South Korea's Customs Service has finally sent a major cryptocurrency scam operation packing, to the tune of 150 billion...
Quick overview
- South Korea's Customs Service has dismantled a major cryptocurrency scam operation, resulting in the arrest of three Chinese nationals and the recovery of 150 billion won ($101.7 million).
- The scammers laundered their crypto gains by accepting payments through platforms like WeChat Pay and Alipay, then purchasing virtual assets to evade detection.
- The laundered funds were used for various purposes, including paying trade fees, supporting foreign students, and funding cosmetic surgeries.
- In response to this case, South Korea is tightening regulations on cryptocurrency transactions to enhance oversight and prevent financial crime.
South Korea’s Customs Service has finally sent a major cryptocurrency scam operation packing, to the tune of 150 billion won ($101.7 million). According to Yonhap News, three Chinese nationals got themselves arrested for breaking the Rules on Foreign Exchange Transactions . This little scheme was up and running from September 2021 to June 2025, – and boy did it get fancy. The scammers used domestic and international accounts to launder their crypto gains.
What the authorities found out is that the crooks were accepting payments from folks using popular platforms such as WeChat Pay and Alipay, then they’d use these to buy up virtual assets from multiple countries in order to fly under the financial radar. These assets were then transferred to local digital wallets and turned into local currency.
🇰🇷 LATEST: South Korea Customs Service uncovered an alleged $101.7M crypto laundering operation using cross-border wallets and bank accounts. pic.twitter.com/gJsJ4Nkm6A
— Cointelegraph (@Cointelegraph) January 19, 2026
Some of the most interesting ways the laundered cash was being used were:
- Coughing up trade and duty-free fees.
- Helping foreign students out with their study abroad expenses.
- Paying for cosmetic surgery for foreign nationals.
- Making some wonky, unclear remittances.
https://en.yna.co.kr/view/AEN20260119003300320
Methods Exploited by Criminals
KCS reported how clever the ring was at evading all the regulatory hawks out there – they used crypto accounts in all these different countries to really muddy the waters and make it hard for anyone to track what was going on. This case really highlights the fact that we still don’t do a great job at tracking all these cross-border digital asset moves.
What KCS is saying is that even if you’re transferring small amounts under 1 million won, you’re now going to have to jump through some extra hoops to prove who you are. This is all part of closing down the loopholes that the scammers were using to get away with it.
Crypto Oversight Intensifies in 2025
The South Korean government has made a real priority out of making sure the crypto space is secure. In 2025 alone, we saw a record number of suspicious transaction reports (STRs) filed by local virtual asset service providers (VASPs) between January and August – that’s 36,684 of them, beating the combined totals for 2023 and 2024.
KCS Representative Jin Sung-joon says that all these efforts are crucial for keeping investors safe and keeping things transparent in this rapidly growing crypto market. Experts reckon that this crackdown reflects how fast digital assets are taking off in South Korea and how seriously the government is about keeping a lid on financial crime.
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