South Korean Customs Bust $107M Crypto Laundering Ring Run by Chinese Nationals

South Korean customs authorities dismantled a sophisticated, unauthorized foreign exchange network involving approximately 150 billion Korean won ($107 million) in cryptocurrency laundering, which operated from September 2021 to June 2025. The scheme was run by three Chinese nationals who disguised illicit transfers as legitimate payments for cosmetic surgery and university tuition. Funds from overseas clients, paid in currencies like USD and Chinese yuan, were converted to crypto on overseas exchanges, moved to South Korea, and then sold for Korean won via local platforms, routing through domestic bank accounts to obscure the trail. The case highlights regulatory gaps, particularly in enforcing the FATF Travel Rule, and has prompted calls for stronger due diligence in high-value service industries and greater scrutiny of crypto off-ramps. Investigators noted the operation focused on exploiting service export industries rather than digital theft.

(Source：CCN)