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- South Korea uncovers a $101.7M crypto laundering network using layered cross-border transfers.
- Three Chinese suspects indicted as officials trace complex crypto laundering routes across accounts.
- New regulatory steps target apps and stablecoins to curb rising crypto laundering activity nationwide.
South Korean customs officials have revealed a major crypto laundering case involving 150 billion won ($101.7 million). Investigators said an international crime group used cross-border transfers to mask funds. The Korea Customs Service confirmed foreign exchange violations. As the probe continues, authorities anticipate identifying more suspects.
As per a local report, the crime ring relied on illegal foreign exchange routes. KCS has indicted three Chinese nationals in connection with the crypto laundering activity. Officials said the violations fall under South Korea’s foreign exchange laws. The case highlights growing scrutiny of international digital transactions.
KCS reported that nearly 149 billion won moved between September 2021 and June 2025. The transfers passed through domestic crypto exchanges, overseas cryptocurrency accounts, and South Korean bank accounts. Officials said the structure of the crypto laundering network allowed continuous movement without detection.
Routine Transactions Masked Crypto Laundering Transfers
Authorities stated that the money seemed to be associated with regular service payments. Some entries were disguised as cosmetic surgery fees for foreigners. Others appeared as educational expenses for students studying abroad. These steps helped conceal the crypto laundering process inside routine transactions.
The authorities reported that the suspects had acquired cryptocurrency in various countries. They then used it to trade in South Korean digital currency. After conversion, the funds were converted into Korean won. The officials labeled the pattern as a complex laundering network. The arrangement facilitated stacked crypto laundering transactions on multiple accounts.
Also Read: South Korea Blocks Offshore Crypto Apps as Google Play Enforces New Rules
KCS claimed that the case illustrates regulatory issues in international digital movement. According to the officials, the adoption of cryptocurrencies complicates oversight. They cautioned that crypto laundering keeps on changing and there are newer forms of transfers. The agency assured that the investigation is still ongoing and it can be extended.
New Regulations Strengthen Oversight of Crypto Platforms
There are some regulatory changes introduced in South Korea. On January 28, Google Play will block foreign crypto apps without VASP registration. The regulation gives preference to local exchanges such as Upbit and Bithumb. According to officials, the step mitigates the risks of crypto laundering by the non-registered systems.
The government also lifted a nine-year corporate cryptocurrency investment ban. Investment Companies and professional investors are allowed to hold as much as 5 percent of their equity in the top 20 cryptocurrencies. Authorities reported that supervision will be stringent to curb the crypto laundering flows.
The Financial Intelligence Unit of South Korea recorded 36,684 suspicious transaction reports laid down in the first half of 2025. This was higher than the two years before it. Regulators are currently emphasizing stablecoin regulation to approve issuers, require reserves, and use it across borders. Officials indicated that the changes are to limit the avenues of crypto laundering and improve transparency.
Also Read: US Charges Venezuelan National in Billion-Dollar Crypto Money Laundering Case
