BREAKING: South Korea Clamps Down on Crypto Crime – Two USDT Money Launderers Sentenced

Crypto's shadow economy takes another hit as South Korean authorities flex their regulatory muscles.

The Tether Takedown

A Seoul court just handed prison sentences to two members of an international USDT laundering operation. While stablecoins promise financial stability, this case proves they're still the go-to tool for cross-border financial mischief.

The Irony of 'Stable'

Law enforcement worldwide keeps proving that dollar-pegged tokens make dollar-denominated crime easier than ever. The operation allegedly moved millions through the crypto equivalent of hawala networks—because why use traditional banking when you can exploit regulatory gray areas?

The Bigger Picture

This sentencing comes as Asian regulators tighten crypto AML controls. South Korea's Financial Services Commission recently expanded travel rule requirements—too little too late for this bust, but a sign of mounting pressure on illicit flows.

Another day, another reminder that crypto's killer app remains bypassing financial controls—whether for revolutionary decentralization or old-fashioned profit skimming.

USDT Money Laundering Ring: Defendants Jailed for Two Years

The South Korean media outlet Financial News reported that the Criminal Division of the Seoul Eastern District Court’s Presiding Judge Lee Jeong-hyeong sentenced the duo to two years in prison each on June 22.

The defendants were identified as a college student surnamed Duong (23) and an unemployed individual surnamed Pham (also 23).

The court found both individuals guilty of violating the Special Act on Prevention of Telecommunications and Financial Fraud and Refund of Damages.

Prosecutors explained that Duong and Pham first made contact with the voice phishing scam ring in October last year.

The ring recruited both via a Telegram open chat room. The ring’s organizers told Duong and Pham that they were to receive the proceeds of voice phishing scams in Korean won.

The duo was then instructed to use this money to buy USDT, which they then sent to a crypto wallet held by a member of a voice phishing gang who was residing in Vietnam.

The ring paid both Duong and Pham commission fees of 50,000 won ($36.44) to 100,000 won ($72.88) per 10 million won ($7,288) worth of USDT they sent.

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‘Hash Sentence Inevitable,’ Judge Explains

The court heard that the voice phishing ring succeeded in duping South Korea-based victims out of thousands of dollars’ worth of cash transfers.

The ring’s employees called people pretending to be credit card delivery workers, insurance company employees, National Tax Service staffers, and even public prosecutors.

They usually told potential victims that they were calling to check the safety of their bank accounts.

The ring used a range of money laundering techniques, using other accomplices from Uzbekistan and Vietnam.

The judge said that the court had not handed out a harsher sentence because neither of the defendants had criminal records in South Korea. But Lee added:

“Even if the defendants did not orchestrate the crime, they must be severely punished. They played an essential role in the crime, acting as intermediaries. They have also not made any special efforts to help compensate the victims for the damages incurred.”

USDT-related crime is on the rise in South Korea, as the coin’s popularity in the nation continues to grow. This year has seen a sharp rise in bogus USDT-themed over-the-counter deals and related thefts.