South Korean Customs Authorities Nab $101.7M Crypto Fraud Ring

The South Korean Customs Service (KCS) has dismantled a criminal ring involving nearly 150 billion won ($101.7 million) in crypto via a money laundering scheme.

Per the Korean Yonhap report, three Chinese nationals were held for violating the foreign exchange transactions act. The cryptos were laundered between September 2021 and June 2025 by “exploiting” crypto accounts – domestic and international, customs office noted.

Criminals Purchase Cryptos From Multiple Countries – Korean Customs Service

The agency said Monday that the criminals are facing money laundering charges by receiving deposits from customers via WeChat Pay and Alipay.

They supposedly purchased virtual assets from various countries to evade monitoring from financial authorities. These cryptos were then transferred to digital wallets in South Korea and converted to Korean won.

The criminals exchanged trade fees, duty-free purchase fees, and study abroad funds, apart from unclear remittances, authorities noted. Besides, the funds were transferred under legitimate expenses like cosmetic surgery fees for foreign nationals.

South Korea Sharpens Crypto Oversight in Bid for Stronger Security

Seoul has taken steps to become a world crypto hub and has spent much of 2025 embracing cryptocurrencies at an unparalleled pace. However, the news of flagged crypto transactions shows a dedication to security that’s critical for the expanding industry.

The government recently said that it would tighten oversight of cryptocurrency transfers below 1 million won. This closes a loophole that allowed users to evade identity checks.

In September, South Korea flagged a record 36,684 suspicious crypto transactions in 2025, surpassing the combined total of the previous two years.

Representative Jin Sung-joon and the Korea Customs Service (KCS) statistics said that local virtual asset service providers (VASPs) filed 36,684 suspicious transaction reports (STRs) between January and August 2025.