Korean investigation reveals $ 1.48 billion in illegal crypto transactions abroad

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An interagency investigation into suspicion of crypto fraud and money laundering in South Korea led to the discovery of 1.69 trillion won (approximately $ 1.48 billion) in illegal cryptocurrency transactions at the foreign.

According to The Korea Times, 33 people have been implicated by central Seoul Customs for violating the country’s ban on foreign crypto trading.

Detailing the alleged crimes committed, Lee Dong-hyun of Seoul Central Customs Investigation Unit revealed that the criminal acts fell into three categories.

The first group included people who traded cryptocurrency overseas, which is prohibited in South Korea. These people are said to have contracted third-party entities to transfer funds withdrawn for cryptocurrency exchanges to the tune of more than $ 700 million.

According to Dong-hyun, the second category involved people using fake remittance records to buy cryptocurrencies from foreign exchanges. In one case, a foreign exchange trader allegedly used $ 308 million in bogus invoices to send funds to a foreign company.

The funds were reportedly used to buy crypto tokens from foreign exchanges. Considering the Kimchi premium in South Korea which often sees crypto prices much more expensive in the country, the exchange operator in question is said to have earned nearly $ 9 million in capital gains.

In the third category, Dong-hyun revealed that some people are using Korean credit cards to make overseas cash withdrawals for the purpose of buying cryptocurrency from foreign crypto exchanges.

Transfers of virtual assets under the guise of business, travel or study expenses are strictly prohibited, the customs investigator said, adding: Violators will be subject to criminal prosecution or fines.

Related: South Korea’s Small Crypto Exchanges Face Rising Regulatory Heat

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

South Korean authorities have also put in place tighter controls on crypto exchanges in the country. The platforms were forced to remove several altcoin trading pairs deemed risky by regulators and banking partners.

Meanwhile, a recent report warned of skyrocketing debt among South Korea’s young adult population given increased investment in crypto, real estate and stocks.

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