South Korea uncovers $101.7 million crypto money laundering scheme

Three Chinese nationals have been charged over a cross-border operation that laundered tens of billions of won through crypto and the banking system

South Korea uncovers international crypto laundering scheme worth $101.7 million

19.01.2026 - 10:30

252

3 min

Key points:

Authorities uncovered a scheme that laundered about 150 billion won ($101.7 million) through cryptocurrency and illegal FX transactions.
Suspects used crypto wallets and bank accounts across multiple countries.
Funds were disguised as legitimate expenses, including medical treatment and overseas education.

South Korea’s customs authorities have uncovered an international criminal network that laundered roughly 150 billion won in cryptocurrency, according to Yonhap News. The operation is believed to have run from September 2021 through June last year.

The Korea Customs Service said three Chinese nationals have been referred to prosecutors for violating the country’s foreign exchange laws. Investigators allege the suspects used cross-border crypto wallets alongside accounts at South Korean banks to conceal the flow of funds.

Holiday crypto scams: how to avoid getting caught during the festive season

Scam activity tends to surge during the holidays — especially in crypto. We break down the most common schemes and share practical tips on how to protect yourself

How the scheme worked

According to authorities, members of the network purchased cryptocurrency in several countries before transferring it to wallets in South Korea. The assets were then converted into won and distributed across multiple bank accounts.

To evade financial monitoring, transactions were labeled as legitimate expenses, such as payments for cosmetic procedures for foreign nationals or tuition and education-related costs for students studying abroad.

Customs officials said the combined use of cryptocurrency and a fragmented banking setup allowed the group to bypass regulatory oversight for an extended period.

In January, South Korea’s Financial Services Commission approved rules allowing publicly listed companies to invest in cryptocurrencies. Under the framework, legal entities may allocate up to 5% of their own capital to digital assets, limited to cryptocurrencies ranked in the top 20 by market capitalization.

Author: