South Korea Customs Bust $101.7M Crypto Fraud Ring In Major Laundering Case

TLDR

Table of Contents

Korean Customs traced 150 billion won in crypto laundering from 2021 to 2025.
Suspects used WeChat Pay and Alipay to move funds across borders.
Laundered crypto was converted into Korean won through local exchanges.
Authorities reported 36,684 suspicious crypto transactions during 2025.

South Korean customs officers have uncovered a large crypto laundering network tied to illegal cross-border transfers. The case involves more than $101 million moved through complex payment routes and digital wallets. Authorities say the operation used foreign payment apps and local exchanges to avoid detection. The arrests reflect stronger enforcement during tighter crypto oversight. Officials stress that financial crime linked to digital assets remains a key focus for national security efforts.

Customs Service Uncovers Cross-Border Crypto Laundering Network

The Korea Customs Service said it dismantled a criminal group linked to 150 billion won in illegal crypto flows. The funds equal about $101.7 million at current exchange rates. Investigators reported that three Chinese nationals were arrested under the Foreign Exchange Transactions Act.

Officials stated that the group moved crypto between September 2021 and June 2025. The suspects used both domestic and overseas accounts to hide transaction trails. Authorities said the structure helped avoid alerts from financial monitoring systems.

South Korea has dismantled a large cross border crypto laundering network.
Authorities shut down an international ring that laundered $101.7M in cryptocurrency, routing funds through WeChat Pay, Alipay, and bank transfers disguised as tuition or medical expenses, according to… pic.twitter.com/LkTjEAi1bX
— Crypto Miners (@CryptoMiners_Co) January 19, 2026

The customs service confirmed that the suspects are under formal money laundering charges. The case remains under active investigation. More arrests could follow as authorities review related accounts and linked transactions.

Payment Apps Used to Bypass Financial Controls

Customs officers said the suspects accepted deposits through WeChat Pay and Alipay. These platforms allowed fast transfers between users in different countries. Investigators said this step helped avoid traditional banking checks.

The suspects then purchased digital assets from multiple foreign markets. Authorities said the method reduced detection by spreading transactions across platforms. The crypto assets were later sent to wallets based in South Korea.

Once inside the country, the assets were converted into Korean won. Officials said the funds entered the local financial system through exchange services. This step completed the laundering cycle.

Disguised Transfers and False Transaction Labels

Investigators said the suspects masked transfers under false business reasons. These included trade fees, duty-free purchase costs, and study abroad payments. Some transfers were also marked as personal remittances without clear sources.

Customs officers added that some payments were labeled as medical or cosmetic services. The suspects used these labels to avoid extra scrutiny. Authorities said this tactic aimed to make transfers appear routine and lawful.

Officials noted that such methods increase pressure on compliance systems. The agency plans to review transaction categories used by payment providers. This review will include stronger reporting rules for suspicious patterns.

South Korea Tightens Monitoring of Small Crypto Transfers

South Korea has expanded oversight of crypto transactions during 2025. Authorities recently announced tighter controls on transfers below one million won. This change targets a loophole that allowed limited identity checks.

The government said the update improves transparency in low-value transfers. Officials believe small transfers often support larger laundering schemes. The policy aims to improve early detection.

In September, authorities reported a sharp rise in suspicious crypto activity. Data showed 36,684 suspicious transaction reports in 2025. The figure exceeded the combined total from the previous two years.