South Korea Dismantles $102M Underground Crypto Scheme

South Korean authorities dismantled a crypto crime ring that laundered approximately 150 billion won ($102 million) through WeChat Pay, Alipay, and overseas exchanges.

The scheme operated for about four years, converting digital assets into cash under the guise of cosmetic surgery payments and student fees.
Three suspects have been charged, with a Chinese national in his thirties identified as a key coordinator.
Payments were collected from China and other countries, converted to digital coins via overseas exchanges, and moved to South Korea, where they were exchanged back into local currency.
Officials highlighted the use of everyday transactions to mask illegal transfers, reducing bank detection risks.
This case is one of the largest crypto-linked remittance schemes recently uncovered in South Korea.
The incident underscores gaps in cross-border oversight of digital payments, which can quickly bypass traditional controls.

In response, the Financial Services Commission plans to enhance anti-money laundering rules by applying the Travel Rule to transfers above 1 million won, aiming to prevent similar schemes.

These developments reflect the evolving nature of South Korea's crypto market and associated criminal risks. The country also plans to launch spot crypto ETFs in 2026 to support economic growth.