South Korea Customs Uncovers $102M Crypto Laundering Scheme
South Korea’s customs authorities have uncovered an alleged cryptocurrency laundering scheme involving over $101 million, referring three Chinese nationals to prosecutors. The suspects are accused of moving 148.9 billion won between September 2021 and June 2023 by exploiting both domestic and overseas crypto accounts and Korean bank accounts for cross-border transfers. Details of specific methods, exchanges, or financial institutions involved were not disclosed; authorities have not named the suspects or confirmed arrests, asset seizures, or charges. The case remains at the referral stage as prosecutors consider next steps. Experts say the investigation highlights South Korea’s enforcement-led approach to policing cross-border crypto activity, relying on foreign exchange laws and proactive customs involvement due to incomplete regulatory frameworks. Over 80% of the country’s detected foreign exchange crimes over the past five years were related to crypto transactions. Authorities are tightening AML controls and moving toward real-time monitoring, aligning with global standards. The probe is seen as part of a broader crackdown and points to increased compliance expectations for crypto operators in South Korea.
