South Korea Reports Record 36K+ Suspicious Crypto Transactions in 2025

South Korean authorities have flagged a staggering 36,684 suspicious crypto transactions in the first eight months of 2025, surpassing the combined totals of the previous two years. The Financial Intelligence Unit (FIU) received these reports from local exchanges, highlighting a sharp escalation in crypto-related scrutiny.

Illegal remittance schemes, particularly 'hwanchigi,' dominate the cases. These involve converting funds into crypto via overseas platforms, funneling them through domestic exchanges, and cashing out in won. The Korea Customs Service has referred ₩9.56 trillion ($7.1 billion) in crypto-related crimes to prosecutors since 2021, with over 90% tied to money laundering.

Stablecoins, once hailed for payment efficiency, now face heightened regulatory scrutiny. A May 2025 case exposed a broker allegedly moving ₩57.1 billion ($42 million) illicitly, underscoring the sector's vulnerabilities.