South Korea Dismantles 149 Billion Won Crypto Laundering Scheme

South Korea's customs authorities have dismantled a cross-border cryptocurrency laundering operation that processed approximately 149 billion won, equivalent to about 101 million U.S. dollars, involving three Chinese nationals accused of violating foreign exchange laws.

The Korea Customs Service announced on Monday that it had referred the suspects to prosecutors after uncovering the scheme, which operated from September 2021 to June 2024. Officials stated that the group received illicit deposits from anonymous customers via mobile payment platforms WeChat Pay and Alipay. These funds were then used to purchase cryptocurrencies through overseas exchanges in various countries, allowing the suspects to evade initial financial scrutiny. The digital assets were subsequently transferred to wallets in South Korea, converted into Korean won, and distributed across multiple domestic bank accounts.

To mask the transactions, the operation disguised the transfers as legitimate cross-border payments, including fees for cosmetic surgery procedures for foreign nationals, tuition and living expenses for students studying abroad, trade-related costs, and duty-free purchases. The Korea Customs...