South Korea uncovers 140 billion KRW in virtual assets in illegal currency exchange case: cross-border money laundering methods exposed

【Blockchain Rhythm】Breaking news from Korea Customs Service—A large-scale illegal virtual asset exchange scheme has been uncovered. According to investigations, this criminal group has conducted a total of 140 billion Korean Won (approximately $95 million USD) in illegal currency exchanges over four years through virtual asset accounts, charging fees along the way. They have now been handed over to prosecutors for processing.

Their methods are quite “professional”: they accept payments through various channels—WeChat Pay, Alipay, and more. After receiving the money, members of the group purchase virtual assets in multiple countries overseas, then transfer these assets into wallets within Korea, and finally exchange them for Korean Won cash for withdrawal. Customers can provide any reason for currency exchange—trade payments, duty-free purchases, study abroad expenses, or even unclear fund purposes—regardless, as long as the fee is paid, the transaction is completed.

There are three individuals involved in this case, including a man in his 30s of Chinese nationality. This case highlights the regulatory loopholes in cross-border virtual asset flows being exploited by criminals. For users engaged in compliant transactions, this is a warning—virtual asset exchanges involve multiple countries’ laws, and crossing the line can lead to serious violations of the Foreign Exchange Transactions Act.