TL;DR
- South Korea accused three Chinese nationals of laundering 148.9 billion won, roughly $101.7 million.
- The scheme operated between September 2021 and June 2025, using international crypto accounts, wallets in South Korea, and local banks.
- The transfers were declared as legitimate expenses, such as cosmetic surgery and overseas education costs.
The Korea Customs Service accused three Chinese nationals of being part of an international criminal network involved in cryptocurrency laundering totaling approximately 148.9 billion won, equivalent to about $101.7 million. South Korean authorities referred the suspects to prosecutors for alleged violations of the Foreign Exchange Transactions Act.
According to the customs authority, the operations took place between September 2021 and June 2025. The scheme coordinated the use of crypto accounts in multiple countries, wallets registered in South Korea, and numerous domestic bank accounts. This setup enabled the movement of illicit funds through the South Korean financial system via a fragmented and repetitive circuit.
How the Scheme Operated
The method involved purchasing cryptocurrencies across several international markets. The assets were then transferred to wallets in South Korea, converted into won, and distributed across multiple domestic bank accounts. The objective was to disperse the funds to limit traceability and oversight by financial authorities.
To justify the movements, the accused reported the transfers as legitimate expenses. The stated purposes included payments for cosmetic surgery for foreign nationals and costs related to overseas education. The Korea Customs Service said these descriptions were used systematically to conceal large-volume transfers.
The agency also stated that the scheme functioned as an unauthorized foreign exchange system. The structure allowed the suspects to bypass currency monitoring mechanisms and reporting obligations under existing regulations. Authorities have not disclosed the final destination of the funds or the identities of other potential participants.
Crypto Market Conditions in South Korea
Official reports cited by Yonhap indicate that nearly one-third of South Korea’s population has invested in bitcoin or other digital assets in recent years. Industry projections estimate that the country could reach 20 million cryptocurrency investors in the near term.
Local media reported that crypto trading volumes on the country’s five major platforms have shown a sharp decline so far in 2026. Authorities did not link that drop to the ongoing investigation or to the laundering case
