South Korean customs investigators have disrupted an international money laundering network that allegedly processed 148.9 billion won ($101.7 million) using cryptocurrency and the domestic banking system.
The Korea Customs Service (KCS) said Monday that it has referred three individuals to prosecutors for alleged violations of the Foreign Exchange Transactions Act, Yonhap news agency reported.
According to the report, the agency alleges that the ring operated from September 2021 through June 2025, moving funds under the guise of legitimate expenses like cosmetic surgery or tuition. To evade detection, the suspects allegedly purchased crypto assets in multiple jurisdictions, transferred them to crypto wallets in South Korea, converted them into local currency, and dispersed the funds through numerous South Korean bank accounts, the report said.
The enforcement action comes as South Korean authorities step up scrutiny of illegal foreign exchange activity. On Jan. 13, the KCS announced year-round “intensive inspections” targeting underground money exchange operations that could threaten exchange rate stability.
The crackdown is unfolding against a backdrop of widening discrepancies in South Korea’s foreign exchange flows. The gap between trade proceeds handled by banks and the value of goods reported to customs reached roughly $290 billion in 2025 — the largest difference in five years — heightening concerns over illicit capital movements, according to the statement from the KCS last week.
A separate foreign exchange inspection targeting a specific industry in 2025 found 97% of surveyed companies were engaged in illicit transactions, totaling 2.2 trillion won, the KCS said.
Meanwhile, the Monday crackdown places a burgeoning domestic crypto market in the spotlight. According to Financial Services Commission data, the South Korean crypto asset market capitalization reached 95 trillion won ($64.6 billion) as of June 2025, with average daily trading volume of $4.35 billion.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
