2026-01-20 10:02:01

A recent ruling by the Daegu District Court in South Korea has once again sounded the alarm in the industry. A 41-year-old illegal cryptocurrency exchange operator was sentenced to 5 years for involvement in cross-border money laundering, while his 35-year-old employee received a sentence of 2 years and 8 months.

The details are shocking: the gang used USDT to carry out large-scale money laundering operations, processing approximately $1 million of illicit funds through Telegram channels in just three months. Their tactics are quite sophisticated—impersonating law enforcement or relatives of victims to induce victims to transfer funds to accounts controlled by the exchange, then quickly withdrawing and converting the funds to obscure the money trail.

What issues does this case reveal? First, there are obvious vulnerabilities in exchanges' KYC and anti-money laundering mechanisms; second, USDT’s high liquidity and difficulty in tracking make it an ideal "exchange tool" for illicit funds; third, communication tools like Telegram are being exploited by criminals to evade regulation.

For crypto industry practitioners, this is not only a warning about legal risks but also a signal that the entire industry needs to strengthen compliance. All links in the chain—exchanges, wallets, payment networks—must adopt stricter risk control standards; otherwise, they may inadvertently become part of the criminal chain.

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zkProofInThePudding

· 2h ago

5 years? This guy really played himself into it... --- USDT liquidity is strong but tracking is difficult? Basically, it's a regulatory vacuum zone. --- Every time I see these cases, I have to reflect. Are the exchanges we use really reliable? --- A million dollars in three months, this routine sounds too smooth, a bit scary. --- Exchanges with virtually no KYC are really in need of a cleanup. --- Impersonating law enforcement is truly low-level black industry, and victims have no way out. --- Ultimately, it's the exchanges wanting to grow quickly, and they don't really want to do proper compliance. --- Telegram has become a hotbed for crime, someone should have spoken out about this long ago. --- Accidentally becoming part of a criminal chain... feels like this is hinting at how many players? --- The risk point of USDT has been repeatedly mentioned for so many years, yet no one really cares. --- Starting from 5 years ago, this is the real warning, otherwise everyone just considers the fees as taxes.

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MEVHunterNoLoss

· 6h ago

Another USDT money laundering... sounds outrageous, how are there still so many people getting caught in the trap?

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wrekt_but_learning

· 6h ago

Another USDT money laundering case, how are people still falling for this scheme? --- Is KYC just a formality? These days, there are really few compliant exchanges. --- 1 million USD in 3 months... shows how big the vulnerabilities are. --- It's always the same, only thinking about adding risk control after something happens. Why didn't you do it earlier? --- You can launder money just by chatting casually in Telegram groups. Regulations can't keep up. --- If exchanges were truly strict, half of the users probably wouldn't pass KYC. --- Why can illegal platforms still be so arrogant? I have to admire their "innovation." --- Once again, the courts have issued a warning. The industry is still full of chaos. --- USDT is a double-edged sword; it facilitates trading but also enables crime. --- At the end of the day, it's all driven by profit. Who would genuinely focus on compliance?

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ChainMemeDealer

· 6h ago

Another money laundering job, this routine is so familiar. When Tg shouts, the money runs, KYC is just a formality. = The liquidity of USDT is爆表, this should have been anticipated to be exploited. = Impersonating law enforcement agencies to scam, truly outrageous, how lacking in morals can one be. = Exchanges not implementing risk control, in the end, it's us ordinary users who get caught in the crossfire. = 5 years in prison, is it worth it? Anyway, the dirty money has already been transferred. = Compliance? Ha, who in the circle really cares? Everyone is just pushing boundaries. = That's why I never touch small exchanges, the risk is too damn high. = Telegram has really become a hub for crime, it should all be real-name verified. = $1 million in 3 months, this gang really has some skills. = KYC made a joke, regulatory authorities should also reflect on this.

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