Cryptocurrency Money Laundering Cases Skyrocket in South Korea

A recent surge in cryptocurrency money laundering cases has left law enforcement struggling to keep pace. According to data submitted by the National Police Agency, detected money laundering cases skyrocketed from three in 2023 to 1,214 in the first half of this year. However, arrests remain relatively low, with only 42, nine, 10, and 18 people apprehended respectively over the same period.

The rise in money laundering is attributed to the emergence of specialized organizations that handle the proceeds of multiple criminal groups. These organizations operate a division-of-labor structure, making it increasingly difficult for authorities to identify the actual operators and trace fund flows.

One notable example is a 311.3 billion won voice phishing money laundering organization busted by the Jungnang Police Station. The ringleader was accused of converting cash siphoned off through voice phishing and investment fraud into Tether (USDT), which was then transmitted to overseas organizations.