Over 100 Million in Cryptocurrency Seized: Chinese National Crime Ring Exposed in South Korea

South Korean customs authorities have sent three Chinese nationals to prosecutors following an investigation into one of the country’s largest cryptocurrency laundering operations. According to reports from Seoul’s customs office, the suspects allegedly moved approximately $107 million in digital assets through a complex network of illicit channels between September 2021 and June 2025.

Sophisticated Money Movement Tactics

The operation involved an intricate scheme to obscure the origins and destinations of the funds. Investigators revealed that the three individuals received customer deposits through popular Chinese payment platforms WeChat and Alipay, then transferred the money across multiple countries, converted cryptocurrencies into Korean won through unauthorized exchange platforms, and finally distributed the funds through numerous domestic South Korean bank accounts.

To evade detection by financial regulators, the suspects disguised their transactions as legitimate business expenses. False documentation claimed the transfers were payments for cosmetic surgery services for international clients, educational fees for overseas students, and other seemingly innocent purposes. The Seoul Main Customs Office confirmed that the group had funneled a total of 148.9 billion won—equivalent to roughly 100 million dollars—through this elaborate network.

South Korea’s Regulatory Vulnerability

The arrest highlights growing concerns about South Korea’s unresolved cryptocurrency framework. Financial authorities have faced persistent delays in establishing comprehensive guidelines for digital asset trading, creating an enforcement vacuum that criminal networks have exploited. This regulatory gap has forced many local investors to hold billions of dollars worth of cryptocurrency on overseas trading platforms, where they remain beyond the reach of domestic oversight.

The case underscores the tension between South Korea’s booming retail cryptocurrency market and the government’s struggle to implement effective controls. With millions in cryptocurrency flowing through unregulated channels daily, experts warn that similar operations may continue until stronger regulatory frameworks are implemented.