South Korea Detects $1 Billion Fraudulent Cryptocurrency Transactions This Year

According to recent data, a stunning $1 billion in fraudulent crypto-related transactions were uncovered in South Korea in the first half of 2022.

The data, according to Asia Kyungjae, were gathered by the Korea Customs Service and made public by politician Kang Byung-won. It records all crypto-related transactions flagged as fraudulent by customs officials from 2017 to June 2022.

According to the data, customs inspectors have flagged approximately $2.8 billion in crypto-related transactions since 2017. More than $1 billion of this total has been identified in the first half of this year (January to June).

This figure eclipses the total for 2021 ($600 million). This is most likely owing to the fact that the customs service has increased its policing of the sector in the last year as part of a “crackdown” on crypto-related fraud.

All of these transactions involve cross-border fiat bank or wire transfers, or individuals being captured transporting banknotes to and from other places.

Customs officers appear to have indicated that the money has been related to over-the-counter cryptocurrency exchanges and “kimchi premium” dealing in many cases.

The latter refers to instances in which the price of Bitcoin (BTC) and other tokens in South Korea is higher than elsewhere in the world. In such instances, some traders have attempted to buy “cheaper” BTC abroad and subsequently dump coins on home exchanges for up to 30% profit.

This type of transaction is against South Korean foreign exchange legislation, and both customs authorities and prosecutors have been on the hunt for alleged culprits.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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