South Korea Busts $102M Crypto Laundering Ring Using Illegal FX Network

South Korea has uncovered a large international crypto laundering operation. That moved more than 148.9 billion won or about $101.7 million, through illegal foreign exchange channels. The case was exposed by the Korea Customs Service (KCS) and Yonhap News shared this.

According to Yonhap News, South Korea’s Korea Customs Service said it uncovered an international ring accused of laundering about 150 billion won ($101.7 million) in cryptocurrency through unauthorized FX schemes, with three Chinese nationals referred to prosecutors for using…

— Wu Blockchain (@WuBlockchain) January 19, 2026

The investigation found that an organized ring used cryptocurrency. With overseas wallets and multiple Korean bank accounts to secretly move money across borders. Authorities say the operation ran for almost four years from September 2021 to June 2025. This makes it one of the biggest crypto laundering cases in the country so far. South Korean customs authorities referred three Chinese nationals to prosecutors for breaking the Foreign Exchange Transactions Act.

Who Was Involved in the Scheme

Customs officials said the suspects include two men and one woman. One Chinese man in his 30s, who previously studied in South Korea. Another suspect is a naturalized Chinese citizen, worked as a manager and consultant at a famous cosmetic surgery clinic.

Authorities believe one key figure is still overseas. They have issued an arrest warrant and South Korean officials are now working with Chinese customs to track the suspect. The suspects allegedly built a cross border network. That allowed them to move large sums of money without using approved foreign exchange channels.

How the Crypto Laundering Worked

The laundering system followed a clear pattern. First, the group bought crypto in multiple countries using illegal foreign currency. Then they sent the crypto to wallets based in South Korea. After that they sold the crypto on Korean exchanges and converted it into Korean won.

Once the money was in the local banking system. The criminal moved the funds through many different bank accounts and withdrew some cash via ATMs. Additionally, they used layered transfers to hide the original source of the money. This method helped them avoid detection in a country known for having some of the world’s strictest crypto rules.

Fake Expenses Used to Hide the Money

To make the transactions look normal, the suspects disguised the money as everyday payments. Authorities say the funds were sent under the label of:

• Cosmetic and plastic surgery fees for foreign nationals
• Overseas study and education costs
• Duty-free shopping purchases
• Import and export trade settlement
• General overseas remittances

On paper, these looked like legal payments. In reality, they were part of a global laundering network.

Why This Case Matters

South Korea already has very tough crypto regulations. Exchanges must follow strict anti-money laundering rules and banks closely monitor crypto related accounts. Even so, this case shows how criminals still find ways to move money using private wallets and overseas platforms.

The government says this case will likely lead to even tighter controls in 2026. Specifically, this may include stronger on-chain tracking combined with closer cooperation between customs and financial watchdogs. Furthermore, officials are considering stricter rules for private wallets to prevent illicit transfers. However, authorities clarify that crypto itself is not the problem; instead, the real issue is how criminals misuse it. For now, the message is clear. Even in one of the world’s most regulated crypto markets, illegal money flows are still being hunted down. While South Korea is not playing around.