South Korea Busts USDT Laundering Network Tied to 265 Phishing Fraud Cases

Highlights:

• South Korean police arrested 56 people over crypto money laundering linked to phishing crime proceeds.
• Suspects allegedly used Tether and crypto exchanges to illegally move nearly 16.8 billion won.
• Police traced thousands of accounts and found 265 phishing cases worth about 25.7 billion won.

South Korean police have arrested 56 people in a major crypto-related money laundering case linked to phishing crime proceeds. The case involved the use of virtual assets, including Tether (USDT), to move and illegally exchange large amounts of money connected to online scams.

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Newsis reported on Tuesday that the Seoul Metropolitan Police Agency’s metropolitan crime investigation unit had sent 23 suspects to prosecutors on charges including violations of the Foreign Exchange Transactions Act and the Specific Financial Information Act. Police also arrested two key suspects, identified only as A and B.

The suspects allegedly worked with a phishing group operating from Cambodia. Police said they used both local and foreign crypto exchanges to move the stolen funds and convert them into other assets. Investigators believe the group illegally exchanged about 16.8 billion won over a period of more than one year.

INTEL: South Korean police arrest 23 people in $11M $USDT laundering case pic.twitter.com/B35daMY3GJ

— Solid Intel 📡 (@solidintel_x) June 16, 2026

Police Trace Funds Through Thousands of Accounts

Police determined the scale of the case after analyzing more than 11,300 accounts linked to the money-laundering operation. The investigation identified 265 phishing-related damage cases worth around 25.7 billion won. These cases included voice phishing and investment fraud.

Voice phishing usually involves scammers calling victims and impersonating officials, financial companies, or other trusted people. Investment fraud often tricks victims into sending money by promising fake returns. In this case, police said the funds from those crimes were moved through crypto transactions and exchange channels.

The suspects allegedly bought USDT and moved it between local and overseas crypto exchanges. Police said such assets can be attractive to criminal groups because they are easy to transfer across borders. Authorities also froze about 650 million won in suspected criminal proceeds before indictment. This step allows authorities to freeze or preserve suspected illegal profits before a final court ruling.

Suspected Ring Leader Remains Wanted

Police said the suspected overall leader of the organization, identified as C, has not yet been arrested. Authorities have issued an Interpol Red Notice for C and plan to continue tracking the suspect. In a separate part of the investigation, police also caught 33 more people accused of illegally exchanging about 6.3 billion won using virtual assets. These suspects allegedly provided illegal exchange services to foreign tourists and acquaintances.

According to investigators, they received fees for buying Tether on crypto exchanges, transferring the assets between exchanges, and then selling them for foreign currency or Korean won. Police said this activity can also fall under illegal exchange services when it is done on behalf of others without proper authorization. It also warned that people should be careful because handling someone else’s crypto transactions or converting virtual assets into won for others may be punishable under the law.

South Korea has also increased its focus on crypto crime investigations. Earlier in June, the Korean National Police Agency partnered with Chainalysis to train officers in tracking stolen crypto across wallets, exchanges, bridges, and other blockchain services.

🇰🇷 We are honoured to have signed an MoU with the Korean National Police Agency (@polinlove) to strengthen virtual asset investigation capabilities in South Korea.

The agreement deepens our collaboration across training, professional certification, and the joint development of… pic.twitter.com/m4Et1jZU3G

— Chainalysis (@chainalysis) June 10, 2026

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