South Korean customs authorities dismantled an international criminal network accused of laundering nearly $101.7 million in cryptocurrency through an illegal foreign exchange scheme, according to Yonhap. The Korea Customs Service (KCS) referred three Chinese nationals to prosecutors for alleged violations of the Foreign Exchange Transactions Act.
According to the investigation, the scheme operated between September 2021 and June 2025 and is believed to have processed 148.9 billion won through a combination of overseas crypto accounts, wallets in South Korea, and the domestic banking system. The funds were transferred under the guise of seemingly legitimate expenses, such as cosmetic surgery for foreign nationals or overseas tuition payments.
The operation involved purchasing cryptocurrency across multiple jurisdictions, transferring it to local wallets, converting it into Korean won, and then dispersing the funds through numerous bank accounts in South Korea to evade financial oversight.
The enforcement action aligns with tighter supervision of illegal foreign exchange transactions. On January 13, the KCS announced year-long intensive inspections after detecting in 2025 a gap of nearly $290 billion between trade proceeds handled by banks and the values reported to customs authorities.
Source: https://en.yna.co.kr/view/AEN20260119003300320
Disclaimer: Crypto Economy Flash News are based on verified public and official sources. Their purpose is to provide fast, factual updates about relevant events in the crypto and blockchain ecosystem.
This information does not constitute financial advice or investment recommendation. Readers are encouraged to verify all details through official project channels before making any related decisions
