Briefly
- South Korea’s customs authority has dismantled an alleged crypto laundering operation accused of shifting an estimated 149 billion gained utilizing crypto and financial institution accounts.
- Prosecutors haven’t disclosed arrests, asset seizures, or whether or not prices have been filed.
- The case displays South Korea’s enforcement-led oversight of cross-border crypto flows, Decrypt was instructed.
South Korea’s customs authority has dismantled an alleged cryptocurrency laundering operation involving funds value over $101 million.
Three Chinese language nationals have been referred to prosecutors after the Korea Customs Service uncovered an alleged crypto laundering scheme that moved funds throughout nationwide borders, based on a report from Yonhap Information Company printed by Korea Occasions on Monday.
Korea Customs Service officers mentioned the case concerned the cross-border motion of cryptocurrency, wherein the suspects “allegedly laundered 148.9 billion gained between September 2021 and June of final 12 months” by “exploiting home and abroad cryptocurrency accounts and Korean financial institution accounts.”
The company didn’t identify any exchanges, intermediaries, or monetary establishments, and didn’t define the strategies used to switch the funds.
Authorities didn’t disclose the identities of the suspects, verify whether or not arrests had been made, or point out whether or not any belongings have been seized or frozen. Prosecutors have additionally not introduced whether or not formal prices have been filed.
At press time, the case remained on the referral stage, with prosecutors anticipated to find out subsequent steps.
Decrypt has reached out to the Korea Customs Service and the Korean Nationwide Police Company for remark, and can replace this text ought to they reply.
‘Enforcement first, regulation later’
Observers instructed Decrypt the case displays South Korea’s enforcement-led method to policing cross-border crypto exercise below current international trade legal guidelines, with customs authorities taking the lead, whereas compliance expectations for exchanges are largely seen as a continuation of already tightening oversight.
“This measure clearly demonstrates South Korea's ‘enforcement first, regulation later’ method,” Siwon Huh, researcher at South Korean crypto analysis agency 4 Pillars, instructed Decrypt.
The nation’s rules, Huh mentioned, “stay incomplete” as a result of “conflicts between the Financial institution of Korea and the Monetary Providers Fee.”
With no complete legislation governing cross-border crypto flows, South Korea depends on international trade guidelines, inserting enforcement largely with customs officers as crypto turns into a typical channel in FX crime circumstances, Huh defined.
“A notable level is that South Korea’s intervention in cross-border cryptocurrency actions is led by the Korea Customs Service relatively than monetary supervisory authorities,” Huh mentioned, citing the company’s information which signifies that over 80% ($6.8B) of international trade crimes detected over the previous 5 years have been “associated to cryptocurrency transactions.”
Huh additionally pointed to a separate case uncovered in Could 2025, wherein customs authorities mentioned $38.7 million (57.1 billion gained) was illegally transferred between South Korea and Russia via greater than 6,000 transactions utilizing Tether’s USDT stablecoin.
The case exhibits South Korea’s “aggressive, tech-driven enforcement” below the 2024 Digital Asset Person Safety Act, Alexandre Philippine, co-founder of Web3 accelerator SkryLabs, instructed Decrypt.
“With a 40% surge in crypto seizures reported by the Monetary Supervisory Service (FSS) in 2025, it alerts a ‘regulate-first’ coverage to curb sanctions evasion amid international tensions,” he famous.
The newest probe may “heighten compliance” for native gamers and mandate “real-time transaction flagging and stricter AML audits,” because the nation formalizes its frameworks, “aligning with FATF requirements and mirroring Asia’s broader crackdown wave,” Phillippine added.
That method comes as South Korea tightens crypto oversight, with authorities rising AML controls and coordination round cross-border flows.
The case seems to replicate how South Korean legislation enforcement authorities “are constructing a extra subtle, cross-agency coordination framework,” Tim Solar, senior researcher at Hashkey, instructed Decrypt. “The core regulatory logic has shifted from merely combating crypto-related fraud to exercising tighter management.”
Disclosure: HashKey Holdings Restricted, via HashKey Capital, is one among 22 traders in an editorially impartial Decrypt.
