The Korea Customs Service says it dismantled an alleged cryptocurrency laundering ring that moved about $101 million. Officials said the transfers occurred between September 2021 and June last year using domestic and overseas crypto wallets and Korean bank accounts, and three Chinese nationals were referred to prosecutors, as reported.
The agency did not name exchanges, intermediaries, or transfer methods and gave no details on arrests or frozen assets. (Ed. note: The case remains at the referral stage while prosecutors decide next steps.)
Observers say the probe highlights an enforcement-first stance on cross-border crypto flows. “This measure clearly demonstrates South Korea’s ‘enforcement first, regulation later’ approach.” — Siwon Huh, researcher at Four Pillars.
Huh said rules remain incomplete because of tensions between the Bank of Korea and the Financial Services Commission. He added that customs officials lead enforcement and cited agency data linking cryptocurrencies to over $6.8 billion in foreign-exchange crimes over five years.
Investigators previously flagged a case in May 2025 that moved about $38.7 million to Russia via more than 6,000 USDT transactions, described in a separate report. “With a 40% surge in crypto seizures reported by the Financial Supervisory Service (FSS) in 2025, it signals a ‘regulate-first’ policy to curb sanctions evasion amid global tensions,” said Alexandre Philippine, co-founder of SkryLabs.
Tim Sun of Hashkey said agencies are building closer coordination and shifting toward tighter control. Prosecutors will decide whether formal charges are filed.
