$100M Underground Crypto Scheme Dismantled in South Korea

South Korean authorities have busted a crypto crime ring that moved about 150 billion won ($102 million) through WeChat Pay, Alipay, and overseas exchanges.

The group converted digital assets into cash while disguising transactions as cosmetic surgery payments and student fees.

Authorities have charged three suspects in connection with the scheme.

Inside the South Korea Crypto Remittance Ring

Investigators from the Korea Customs Service said the crypto crime ring ran quietly for about four years before being detected.

Payments collected through WeChat Pay and Alipay were gathered from clients in China and other countries, per Yonhap News.

The money was then sent to overseas crypto exchanges, converted into digital coins, and moved into wallets linked to South Korea.

Once inside the country, the funds were swapped back into local currency and released to receivers.

Officials said the operators used everyday payments to mask the transfers. Some transactions were listed as medical bills for cosmetic surgery, while others appeared as tuition payments for students studying abroad.

By blending illegal transfers with normal expenses, the group reduced the chances of being flagged by banks.

Customs officers traced patterns across multiple accounts, digital wallets, and payment apps before identifying three suspects.

Authorities said a Chinese man in his thirties played a central role in coordinating the flow of funds.

In a separate development, South Korea recently announced plans to launch spot crypto ETFs in 2026 as part of its economic growth strategy.

This highlights both the country’s evolving crypto market and the risks of criminal activity.

Crypto Remittance Ring Exposes Gaps in Cross-Border Oversight

Authorities said the case ranks among the largest crypto-linked remittance schemes in recent years.

The South Korea crypto ring illustrates how quickly digital payments can bypass traditional controls across borders

Market watchers noted that tracking crypto transfers remains difficult because transactions can move through several exchanges and wallets in a short time.

In December, a woman in her thirties was jailed after laundering about $180 million through digital assets, one of the largest cases regulators have encountered.

Financial platform OneSafe warned that criminals increasingly rely on encrypted group chats to coordinate deals beyond the reach of ordinary banks.

Officials said the pattern seen in both cases points to a wider problem rather than a single isolated network.

In addition to this, the Financial Services Commission plans to expand anti-money laundering rules by applying the Travel Rule to transfers above 1 million won.

The move aims to stop the South Korean crypto crime ring and similar networks from splitting payments to avoid detection.

The post $100M Underground Crypto Scheme Dismantled in South Korea appeared first on Coinspeaker.