South Korea Cracks Down on Crypto-Facilitated Car Exports to Sanctioned Countries

South Korean authorities have referred four individuals to prosecutors for allegedly orchestrating the illegal export of over 1,000 used cars to Russia and Belarus. The exports were valued at around $36 million but cryptocurrency payments reached a staggering $204 million.

The group used Tether (USDT), a stablecoin pegged to the U.S. dollar, to circumvent international sanctions imposed on Russia and Belarus due to their invasion of Ukraine. Normal bank remittances had become impossible under these restrictions.

Investigations found that the illicit funds were then transferred to crypto wallets controlled by an unregistered foreign-exchange operation based in South Korea. To conceal the trail, the cryptocurrency was sold on a domestic exchange and converted into South Korean won, effectively laundering the proceeds through the local financial system.