- The Korea Customs Service says it uncovered an alleged crypto-laundering scheme that moved about 148.9 billion won (roughly $101 million) across borders.
- Three Chinese nationals have been referred to prosecutors; authorities have not confirmed arrests, seizures, or formal charges.
- The agency said the funds moved between September 2021 and June of last year using domestic and overseas crypto accounts and Korean bank accounts.
- Observers say the case highlights an enforcement-led approach to cross-border crypto oversight and gaps in Korea’s regulatory framework.
- Authorities previously flagged other large crypto-linked FX crimes, including a May 2025 case involving $38.7 million moved via USDT.
The Korea Customs Service says it dismantled an alleged cross-border cryptocurrency laundering operation that moved about 148.9 billion won (roughly $101 million) between September 2021 and June of last year, and referred three Chinese nationals to prosecutors, according to a report. The agency said suspects used both domestic and overseas crypto accounts alongside Korean bank accounts to move the funds.
Officials did not name exchanges, intermediaries, or financial institutions, and did not detail transfer methods. Authorities also did not disclose suspect identities, confirm arrests, or say whether assets were seized or frozen. The case remained at the referral stage while prosecutors decide next steps.
Observers linked the probe to Korea’s current enforcement stance on cross-border crypto under existing foreign exchange rules. Four Pillars researcher Siwon Huh said, “This measure clearly demonstrates South Korea‘s ‘enforcement first, regulation later’ approach.” He added the rules are incomplete due to tensions between the Bank of Korea and the Financial Services Commission.
The customs agency’s data, cited by observers, indicates more than 80% of foreign-exchange crimes detected over five years—about $6.8 billion—were linked to crypto transactions. Authorities previously uncovered a case in May 2025 that allegedly moved $38.7 million (57.1 billion won) between South Korea and Russia through thousands of USDT transactions, according to a separate case flagged by customs.
SkryLabs co-founder Alexandre Philippine said the probe shows aggressive, tech-driven enforcement and noted a reported 40% surge in crypto seizures by the Financial Supervisory Service in 2025. He added the effort could lead to stricter AML checks, real-time transaction flagging, and closer alignment with FATF standards. HashKey researcher Tim Sun said authorities appear to be building “a more sophisticated, cross-agency coordination framework,” shifting focus toward tighter control of cross-border flows.
Requests for comment were sent to the Korea Customs Service and the Korean National Police Agency.
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