Three Chinese nationals faced prosecution for laundering $107 million in cryptocurrency in South Korea.

South Korean authorities have taken strict action against a criminal group that illegally transferred over $107 million worth of cryptocurrency through unauthorized channels. Three Chinese nationals were arrested and brought before prosecutors for their involvement in one of the largest crypto money laundering cases in the region.

Details of the Illegal Cryptocurrency Operation

The Seoul Main Customs Office identified that the suspects collected deposits from customers via WeChat and Alipay, then transferred the funds to various cryptocurrency wallets and South Korean bank accounts. The criminal operation lasted from September 2021 to June 2025, during which the detainees profited by converting digital assets into Korean won.

The total amount transferred reached 148.9 billion won, a significant portion of the underground crypto economy in the country. The Chinese nationals coordinated transactions across multiple countries to make it more difficult for financial regulators to track.

Strategies to Avoid Detection

To conceal their illegal activities, the suspects employed sophisticated money laundering techniques. They purchased cryptocurrency in multiple countries, transferred it to digital wallets in South Korea, and then moved the money within the domestic banking system using stories about cosmetic surgery payments or education expenses for students abroad.

This strategy allowed them to operate for several years before authorities uncovered the scheme. The use of legitimate-sounding justifications for fund transfers is one of the reasons why it took so long to discover the large conspiracy.

South Korea’s Growing Crypto Regulation Challenge

This arrest occurred amid South Korea’s struggle to develop a comprehensive regulatory framework for the cryptocurrency market. The country continues to lead Asia in crypto adoption but still lacks clear laws and guidelines for the industry.

Due to regulatory gaps, many local crypto investors transferred their digital assets to overseas platforms, resulting in an outflow of billions of dollars worth of cryptocurrency. The complex regulatory environment has also prompted criminal organizations to exploit the system for money laundering schemes like this case.

South Korea’s customs authorities are also coordinating with international law enforcement agencies to understand the full scope of this operation. This case serves as a warning signal not only for investors but also for policymakers, highlighting the need for faster regulatory modernization in the crypto sector.