South Korean investigation reveals illegal crypto transactions worth 1.48 billion US dollars in the country

A cross-agency investigation into suspected crypto fraud and money laundering in South Korea has resulted in 1.69 trillion won (approximately $ 1.48 billion) in illegal cryptocurrency transactions being legally discovered abroad.

According to The Korea Times, 33 people were charged by Seoul Central Customs for violating the country’s ban on trading cryptocurrencies overseas.

Lee Dong-hyun of the Seoul Central Customs Investigation Unit said the offenses were divided into three categories.

The first group includes participants in foreign cryptocurrency exchange transactions that are prohibited in South Korea. These people reportedly have contracts with third party organizations to transfer more than $ 700 million in withdrawals to overseas crypto exchanges.

According to Dong-hyun, the second category is people who use fake remittance documents to buy cryptocurrencies from foreign exchanges. In one case, a stock exchange operator in the country allegedly used $ 308 million in fake invoices to transfer money to a foreign company.

The funds will reportedly be used to buy crypto tokens from overseas exchanges. Given the premium from Kimchi in South Korea, which typically sees crypto prices in the country significantly more expensive, the exchange operator is said to have earned nearly $ 9 million in capital gains.

In the third category, Dong-hyun revealed that some people have used Korean credit cards to withdraw cash overseas to buy crypto on overseas crypto exchanges.

“The transfer of virtual assets under the guise of business, travel or study expenses is strictly prohibited,” said the customs inspector, adding: “Violators will be prosecuted or fined.”

Connected: Small South Korean cryptocurrency exchanges are facing increasing regulatory heat

In fact, 15 of the 33 were fined and another 14 referred to prosecutors. According to Dong-hyun, four people are still under investigation.

The South Korean authorities have also put stricter controls in place on crypto exchanges in the country. Platforms have been forced to remove a number of altcoin trading pairs that have been deemed risky by both regulators and banking partners.

Meanwhile, a recent report warned of rising indebtedness among South Korea’s young adult population due to growing investments in cryptocurrencies, real estate, and stocks.