- South Korean police arrested 23 suspects tied to crypto laundering.
- Authorities linked 11,300 accounts to $17 million scam proceeds.
- Police seized funds while pursuing ringleader through Interpol channels.
South Korean police have arrested 23 individuals accused of helping a Cambodia-based criminal syndicate launder millions of dollars through cryptocurrency transactions. Investigators say the group used thousands of accounts and multiple exchanges to move funds linked to phishing and investment scams, making the case one of the country’s largest recent crackdowns on crypto-related financial crime.
Newsis reported that the Seoul Metropolitan Police Agency’s criminal investigative division detained two key suspects and launched an international search for the alleged ringleader. Authorities believe the organization laundered criminal proceeds generated by a Cambodia-based phishing operation through domestic and overseas cryptocurrency exchanges.
Investigators said the network operated from February 2024 to April 2025. During that period, members allegedly purchased USDT and used the stablecoin to transfer approximately 16.8 billion won, or $11.1 million, in illicit funds.
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Thousands of Accounts Used in Laundering Scheme
Police linked the operation to 265 phishing and investment fraud cases involving roughly $17 million in stolen assets. Authorities also revealed that the group allegedly relied on around 11,300 accounts to move and conceal criminal proceeds. Officials believe the large number of accounts helped obscure transaction trails and complicated efforts to identify the individuals behind the transfers. However, investigators eventually connected the activity to a coordinated laundering network operating across multiple exchanges.
Law enforcement officers seized approximately 650 million won, or about $430,000, in criminal proceeds during the investigation. Meanwhile, the suspected leader remains at large and is now the subject of an Interpol Red Notice. The investigation also expanded beyond the primary laundering ring. Police arrested 33 additional individuals accused of providing unauthorized currency exchange services through USDT transactions. Authorities said these services were offered to tourists and acquaintances without the required approvals.
Moreover, investigators are examining whether the broader network facilitated additional cryptocurrency-related financial crimes. Officials have not ruled out further arrests as the investigation continues. The arrests mark a significant step in South Korea’s efforts to combat cryptocurrency-enabled fraud. With millions of dollars allegedly moved through thousands of accounts, authorities are intensifying cooperation with international agencies to track suspects and disrupt cross-border laundering operations.
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