According to Korean media reports, the Korea Customs Service (KCS) has referred an international criminal ring to the prosecution for organizing an illegal foreign exchange channel. Three Chinese nationals face charges for laundering 150 billion won (approx. $101.7 M) using digital assets.
The investigation determined the group remained active from September 2021 through last June. Confirmed transactions during this period totaled 148.9 billion won. The suspects established an extensive network comprising both overseas and local cryptocurrency wallets, alongside South Korean bank accounts.
The Laundering Scheme
The group purchased cryptocurrency in multiple jurisdictions outside Korea. Subsequently, these assets were transferred to digital wallets registered within South Korea and converted into Korean won.
To evade regulatory scrutiny, the suspects splintered the resulting fiat currency across numerous bank accounts. Documentation disguised these transfers as legitimate expenses: plastic surgery fees for foreign nationals or tuition costs for students abroad. Authorities classified these activities as violations of the Foreign Exchange Transactions Act.
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