South Korea's customs authorities announced on Monday that they have uncovered an international crime ring accused of laundering about 150 billion won ($101.7 million) worth of cryptocurrency through an unauthorized foreign exchange scheme. Three Chinese nationals have been referred to the prosecution for violations of the foreign exchange transactions act. The suspects allegedly laundered 148.9 billion won between September 2021 and June of last year using domestic and overseas cryptocurrency accounts and South Korean bank accounts.
South Korea's Korea Customs Service (KCS) announced on January 19, 2026, that it has busted an international crime ring involved in laundering cryptocurrency worth about 150 billion won ($101.7 million) through unauthorized foreign exchange transactions. Specifically, the group is accused of laundering 148.9 billion won from September 2021 to June 2025. Three Chinese nationals leading the operation have been referred to prosecutors on charges of violating the foreign exchange transactions act.
According to authorities, the suspects purchased cryptocurrency in multiple countries and transferred it to digital wallets in South Korea. They then converted it into Korean won and funneled the funds through numerous domestic bank accounts to evade financial monitoring. The money was disguised as legitimate expenses, such as fees for cosmetic surgery for foreigners or overseas study costs for students.
This case highlights ongoing challenges in regulating cryptocurrency flows amid South Korea's tightening controls on virtual assets. The customs agency plans a special probe into suspected illegal foreign exchange trading, viewing this as part of broader international money laundering networks. Despite using both domestic and overseas accounts to obscure trails, the ring was uncovered through meticulous investigation by the KCS.
The incident underscores vulnerabilities in Korea's foreign exchange oversight and may prompt further regulatory measures. A customs official stated, "We will strengthen ongoing surveillance to eradicate such illegal activities."
