South Korea Cracks Down on $102 Million Crypto Laundering Scheme

In a major breakthrough for South Korea’s crypto regulation drive, authorities in the country have busted an international money laundering network that is said to have laundered a whopping $101.7 million through crypto transactions.

The Scheme

The Korea Customs Service (KCS) disclosed that the gang was in operation from September 2021 to June 2025 and that they disguised the laundering proceeds as legitimate expenses.

To make the proceeds undetectable, the suspects bought cryptocurrencies in different countries, sent the cryptos to their wallets in South Korea, cashed out into Korean Won, and then disbursed the money through numerous South Korean bank accounts.

Also Read: South Korea Signals Spot Bitcoin ETF Approval With New Digital Asset Law

Tightening Regulations

Regulatory authorities worldwide have been increasing their focus on cryptocurrency, and it is not an exception. The Korean Customs Service has recently flagged a significant step towards this trend by announcing continuous “intensive inspections” to crack down on illegal underground money exchange activities that could destabilise the exchange rate. The plan is a part of a larger initiative to resolve the widening foreign exchange flow discrepancies in South Korea, as the difference between trade proceeds handled by banks and the customs value of goods in 2025 stands at approximately $290 billion.

Also Read: South Korea Ends Nine-Year Ban, Opens Crypto Investing for Corporations

Impact on the Crypto Market

According to the Financial Services Commission, the total market capitalisation of crypto assets in the country hit 95 trillion won ($64.6 billion) at the end of June 2025, with an average daily trading volume of $4.35 billion. The crackdown brings attention to the fast, expanding local crypto market. The crypto industry, in general, is facing more scrutiny from regulators as they keep on tightening the regulations. Regulatory clarity will remain at the core of the crypto industry’s growth, as it continues to evolve.

Also Read: South Korea Takes Step to Open Crypto Market to Corporate Investors