An alleged crypto laundering scheme that pushed more
than $100 million through South Korean bank accounts now sits with prosecutors.
Officials say the network hid behind everyday-looking
bills for cosmetic surgery and overseas studies while it moved large volumes of
digital assets into Korean won.
Three Chinese Nationals Face Prosecution
South Korea’s customs service said on Monday that it
has referred three Chinese nationals to prosecutors on suspicion of laundering
about 148.9 billion won, or roughly $107 million, in cryptocurrency, according to local media outlet Yonhap News Agency.
The agency alleges that the group used an unauthorized
foreign exchange
Exchange
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv
Read this Term channel in violation of the Foreign Exchange Transactions Act.
Investigators say the activity ran from September 2021
to June of last year and relied on a network of domestic and overseas
cryptocurrency accounts and South Korean bank accounts.
Keep reading: He Promised 1,200% Returns on $10M – Then Used Photoshop to Hide the Truth
According to customs officials, the suspects booked
transfers as if they covered cosmetic surgery for foreign nationals in South
Korea or study-abroad costs for students.
According to Yonhap News, South Korea’s Korea Customs Service said it uncovered an international ring accused of laundering about 150 billion won ($101.7 million) in cryptocurrency through unauthorized FX schemes, with three Chinese nationals referred to prosecutors for using…
— Wu Blockchain (@WuBlockchain) January 19, 2026
By doing so, they allegedly made repeated high-value
transactions resemble routine cross-border payments that banks see in sectors
such as healthcare and education.
Alleged Laundering Method and Use of Front Expenses
The authorities say the ring bought cryptocurrency in
several countries, sent it to digital wallets in South Korea, converted it into
Korean won and then dispersed the proceeds across numerous domestic bank
accounts.
The case occurs as South Korea continues to debate a
comprehensive framework for its crypto market, even as digital assets have
become a common investment for local households.
Towards the end of last year, South Korea tightened oversight of cryptocurrency transactions, unveiling plans to expand its anti-money
laundering framework.
The government announced that the Travel Rule, a key
compliance measure requiring information sharing on crypto transfers, will
soon apply to transactions below 1 million won (approximately $680).
The initiative introduced bans on insider trading, market
manipulation, and other illicit practices while strengthening regulators’
oversight powers.
An alleged crypto laundering scheme that pushed more
than $100 million through South Korean bank accounts now sits with prosecutors.
Officials say the network hid behind everyday-looking
bills for cosmetic surgery and overseas studies while it moved large volumes of
digital assets into Korean won.
Three Chinese Nationals Face Prosecution
South Korea’s customs service said on Monday that it
has referred three Chinese nationals to prosecutors on suspicion of laundering
about 148.9 billion won, or roughly $107 million, in cryptocurrency, according to local media outlet Yonhap News Agency.
The agency alleges that the group used an unauthorized
foreign exchange
Exchange
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv
Read this Term channel in violation of the Foreign Exchange Transactions Act.
Investigators say the activity ran from September 2021
to June of last year and relied on a network of domestic and overseas
cryptocurrency accounts and South Korean bank accounts.
Keep reading: He Promised 1,200% Returns on $10M – Then Used Photoshop to Hide the Truth
According to customs officials, the suspects booked
transfers as if they covered cosmetic surgery for foreign nationals in South
Korea or study-abroad costs for students.
According to Yonhap News, South Korea’s Korea Customs Service said it uncovered an international ring accused of laundering about 150 billion won ($101.7 million) in cryptocurrency through unauthorized FX schemes, with three Chinese nationals referred to prosecutors for using…
— Wu Blockchain (@WuBlockchain) January 19, 2026
By doing so, they allegedly made repeated high-value
transactions resemble routine cross-border payments that banks see in sectors
such as healthcare and education.
Alleged Laundering Method and Use of Front Expenses
The authorities say the ring bought cryptocurrency in
several countries, sent it to digital wallets in South Korea, converted it into
Korean won and then dispersed the proceeds across numerous domestic bank
accounts.
The case occurs as South Korea continues to debate a
comprehensive framework for its crypto market, even as digital assets have
become a common investment for local households.
Towards the end of last year, South Korea tightened oversight of cryptocurrency transactions, unveiling plans to expand its anti-money
laundering framework.
The government announced that the Travel Rule, a key
compliance measure requiring information sharing on crypto transfers, will
soon apply to transactions below 1 million won (approximately $680).
The initiative introduced bans on insider trading, market
manipulation, and other illicit practices while strengthening regulators’
oversight powers.
