South Korean Customs Authorities Dismantle $101.7M Crypto Fraud Ring

South Korean Customs Service (KCS) has uncovered a sophisticated money laundering operation involving nearly 150 billion won ($101.7 million) in cryptocurrencies. Three Chinese nationals were arrested for violating foreign exchange laws, marking a significant crackdown on cross-border financial crime.

The scheme, active from September 2021 to June 2025, exploited both domestic and international crypto accounts to evade detection. Criminals funneled illicit funds through popular Chinese payment platforms WeChat Pay and Alipay before converting them into virtual assets across multiple jurisdictions.

Authorities revealed the laundered funds were disguised as legitimate transactions, including trade fees, duty-free purchases, and even cosmetic surgery payments for foreign nationals. This case highlights the growing sophistication of crypto-related financial crimes in Asia's fourth-largest economy.

While South Korea continues its push to become a global crypto hub, this enforcement action demonstrates Seoul's parallel commitment to robust financial oversight. The government appears determined to foster innovation without compromising security in its rapidly expanding digital asset market.