South Korean police arrest 56 in crypto‑laundering scheme linked to Cambodia phishing rings

The Seoul Metropolitan Police Agency’s Wide‑Area Criminal Investigation Unit detained 56 people on 16 April, charging them with laundering crime‑proceeds through virtual assets and conducting illegal foreign‑exchange operations. Twenty‑three suspects were involved in moving roughly 168 billion won (about 140 billion won in Tether) from February 2024 to April 2023, converting the tokens on domestic exchanges and routing the cash through shell‑company accounts. The operation used more than 1,100 accounts, including around 310 dummy accounts, and the laundered funds were later funneled as bait money for voice‑phishing and investment‑scam schemes.

An additional 33 individuals were arrested for unregistered exchange services that handled illegal foreign‑exchange transactions for foreign tourists and other victims. Police seized about 6.5 billion won of the proceeds before indictment and have issued an Interpol red notice for the alleged mastermind of the Cambodian‑based laundering network. The police emphasised that facilitating virtual‑asset transactions for others or converting them into fiat currency can constitute a punishable offence and pledged continued enforcement against such activities.