Home News Korean investigation finds $1.48B in illegal overseas crypto transactions

Korean investigation finds $1.48B in illegal overseas crypto transactions


As part of a campaign to identify illegal transactions with crypto, deployed by the South Korean Customs Administration, 33 citizens of the country came to the attention of law enforcement agencies.

In addition to the customs of South Korea, other departments of the country also participated in the program. As part of the investigation of operations with crypto, prosecutors opened criminal cases against 14 citizens of the country. 15 more people were fined, and four are under investigation.

According to law enforcement agencies, about half of the announced amount, $ 710 million, associated with illegal currency exchange. The persons involved in such transactions transferred large amounts to third parties after exchanging them on crypto exchanges. Thus, this is very similar to money laundering. Just under $ 700 million associated with forging payment declarations for buying cryptocurrencies abroad. The remaining funds were used from bank cards issued in South Korea to buy crypto abroad.

Cases of cryptocurrency regulation evasion in South Korea

In one of the cases, the owner of a currency exchanger made 17,000 transactions to transfer money received from local crypto exchanges. The amount was about $ 280 million. The businessman received income of about 5 billion won in addition to currency exchange fees. He and three of his accomplices are awaiting trial for violating the Currency Exchange Act.

In another case, the owner of a trading company received a fine of 12 billion won. He earned 10 billion won from trading Bitcoin. For which he used 355 billion won, withdrawn abroad on fake accounts and invoices from a company registered there. He transferred funds over three years with 563 transactions.

A university student also received a fine of $ 150,000. He made almost $ 200,000 from crypto trading. The young man falsified the remittance report. Stating that the funds intended to pay for studies and living in another country.

One of the perpetrators, with group of assistants, withdrew 32 billion won from an overseas credit card to trade cryptocurrencies. Revenue was 1.5 billion won, and the fine was 1.3 billion won.

Each case of such evasion of crypto regulation in South Korea investigated. In this country, the transfer of virtual assets prohibited under the guise of expenses for trade, travel, study or any other reason, and violators will be subject to criminal prosecution or a large fine.

Tightening regulation of the crypto sphere

In general, a large-scale campaign is underway in South Korea to tighten regulation of the cryptocurrency sphere. Thus, the country’s banks can no longer provide services to crypto exchanges that do not comply with the KYC and AML rules. In addition, regulators require local exchanges to remove certain cryptocurrencies from their sites, which, according to the regulator, do not meet the requirements for transaction transparency.

Thus, South Korea began tight regulation of the cryptocurrency industry in April 2021 amid a bullish Bitcoin market.

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