South Korea Uncovers $100M Crypto-Based Illegal Money Transfer Scheme

South Korean authorities have uncovered a large illegal money transfer scheme that moved about 150 billion won (around $100–$110 million) using cryptocurrencies.

The Korea Customs Service has sent three suspects for prosecution, including a Chinese man in his 30s, for breaking foreign exchange laws. Investigators say the group operated for nearly four years. They collected money through popular Chinese payment apps such as WeChat Pay and Alipay.

The funds were then converted into cryptocurrencies using overseas exchanges and sent to crypto wallets in South Korea. After that, the money was changed back into local currency.

To avoid detection, the suspects reportedly disguised the transfers as normal personal expenses, including payments for cosmetic surgery and tuition fees for students studying abroad. This helped them move large amounts of money without raising suspicion from banks or authorities.

South Korea Tightens Crypto Rules as Authorities Crack Down

The case is one of the biggest crypto-related illegal remittance schemes discovered in South Korea in recent years. It shows how digital assets are increasingly being used to move money across borders in ways that are hard to track. Authorities say criminals are becoming more advanced, often using encrypted messaging apps and breaking transactions into smaller amounts to stay under the radar.

This investigation follows another major case in December, when a woman in her 30s was sentenced to prison for laundering about $180 million through cryptocurrencies.

In response to rising crypto-related crimes, South Korea is tightening regulations. The Financial Services Commission plans to expand Anti-Money Laundering rules by strengthening the Travel Rule. The new rules would require crypto exchanges to collect transaction details for transfers of 1 million won (about $680).

The goal is to stop criminals from splitting large transfers into smaller amounts to avoid checks. Authorities plan to finalize the new rules in the first half of 2026 and submit them to the National Assembly.