South Korea busts alleged $102 million crypto laundering scheme: report

South Korean customs investigators have disrupted an international money laundering network, referring three individuals to prosecutors for alleged violations of the Foreign Exchange Transactions Act. The scheme, which allegedly operated from September 2021 through June 2025, processed approximately 148.9 billion won ($101.7 million). The suspects reportedly disguised fund movements as legitimate expenses like cosmetic surgery or tuition, purchasing crypto assets across multiple jurisdictions, transferring them to South Korean wallets, converting them to local currency, and dispersing the funds through numerous bank accounts to evade detection.

This action is part of a broader crackdown by South Korean authorities on illegal foreign exchange activity, following the Korea Customs Service's (KCS) announcement of intensive inspections targeting underground money exchange operations. The heightened scrutiny comes amid widening discrepancies in South Korea's foreign exchange flows, with the gap between trade proceeds and reported goods reaching a five-year high in 2025, raising concerns over illicit capital movements. The crackdown also puts the growing domestic crypto market, valued at $64.6 billion as of June 2025, under the spotlight.

(Source：The Block)