According to Yonhap News Agency, the Seoul Jungnang Police Station announced on March 19, 2026, that it had dismantled a money laundering syndicate primarily composed of family members and relatives. The group operated an unregistered virtual asset exchange in Seoul’s Myeongdong, converting cash obtained from phone scams into Tether (USDT) and transferring it overseas, with an alleged money laundering scale amounting to tens of billions of Korean won. Additionally, the syndicate exploited rising precious metal prices by purchasing gold via virtual assets across borders and exporting it for profit. Police have arrested 19 suspects, including four—led by main money launderer A (46)—who are currently in detention. The mastermind of the fraud network, B (44), has fled overseas and is currently being pursued. Authorities have seized approximately 6 billion Korean won in illicit proceeds, including cash, silver balls, and gold bars.
South Korean police dismantle virtual asset money laundering ring in Myeongdong, seize 6 billion won in illicit proceeds.
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Summary
South Korean police have dismantled a money laundering ring in Myeongdong, shutting down an unregistered virtual asset exchange linked to AML violations. The group, composed of family members, converted cash obtained from phone scams into USDT and transferred funds overseas. Suspects also exploited loopholes in digital asset regulations to purchase gold and export it for profit. Authorities have arrested 19 individuals and seized 6 billion won in cash, gold, and silver. The group’s leader has fled and is currently being hunted.
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