Breaking News: South Korea Busts $101M Crypto Money Laundering Network
South Korean authorities have dismantled an international crypto money laundering operation involving nearly 148.9 billion won ($101.7 million), according to a statement released Monday by the Korea Customs Service (KCS).
Three Chinese nationals have been handed over to prosecutors for allegedly violating the Foreign Exchange Transactions Act. Investigators say the group used illegal foreign exchange channels to move large sums of cryptocurrency across borders and into South Korea.
How the Operation Worked
The scheme reportedly ran from September 2021 to June 2025. During this period, the suspects bought crypto assets in multiple countries, transferred them into South Korean wallets, converted them into Korean won, and then distributed the funds across numerous local bank accounts.
To avoid detection, the transactions were disguised as legitimate payments, including cosmetic surgery fees for foreign patients and overseas tuition expenses. By spreading funds across multiple wallets and accounts in different countries, the network made tracking extremely difficult for traditional monitoring systems.
Crypto Regulation Tightens Amid Policy Shift
The crackdown comes at a critical moment for South Korea’s crypto market. Recently, regulators announced plans to lift the country’s nine-year ban on corporate crypto investment. Under the new rules, publicly listed companies will be allowed to invest up to 5% of their equity capital in the top 20 cryptocurrencies by market capitalization on the nation’s five major exchanges.
In parallel, the National Assembly has approved amendments to the Capital Markets Act and Electronic Securities Act, laying the groundwork for tokenized securities (STOs) and smart contract adoption. The new STO framework is expected to take effect in January 2027 as part of broader crypto deregulation efforts, which may also include Bitcoin ETF approvals.
The Bigger Picture
These moves underline South Korea’s dual-track approach to crypto: encouraging innovation and institutional participation while simultaneously strengthening enforcement against illegal cross-border financial activity.
The message is clear — crypto adoption is expanding, but compliance and oversight are becoming stricter than ever.