South Korea Cracks $101.7 Million Crypto Laundering Ring

Highlights:

• South Korea breaks a major money laundering ring using crypto and local banks.
• Three suspects face legal action for violating foreign exchange laws.
• 2025 probe finds 97% of companies involved in illegal 2.2 trillion won transfers.

South Korean customs officials have announced the disruption of a major international laundering scheme. Investigators said the network processed 148.9 billion won, equal to $101.7 million, through cryptocurrency and local banks. The Korea Customs Service (KCS) sent three suspects to prosecutors for breaking the Foreign Exchange Transactions Act, Yonhap news agency reported.

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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

Four-Year Crypto Laundering Operation

The group allegedly operated from September 2021 until June 2025. According to officials, they disguised transfers as tuition or cosmetic surgery payments. The suspects purchased crypto assets abroad, moved them into wallets inside South Korea, converted them into local currency, and spread the money across numerous domestic accounts.

Authorities stressed that this crackdown is part of wider enforcement efforts. On January 13, the Korea Customs Service announced year-round “intensive inspections” aimed at illegal money exchange operations. Officials said such activities could harm currency stability and increase risks for the financial system.

The crackdown comes at a time of growing concern over foreign exchange flows. In 2025, the gap between trade proceeds handled by banks and the value of goods reported to customs reached $290 billion. This was the largest difference in five years. Officials said the imbalance raised serious risks of hidden capital movements.

Widespread Corporate Fraud and Growing Crypto Market in South Korea

A separate inspection in 2025 targeting one industry revealed that 97% of surveyed firms were engaged in unlawful transactions. The total value of those activities was estimated at 2.2 trillion won. The findings highlighted how widespread illicit practices had become in the corporate sector. The Monday announcement also placed renewed focus on the domestic crypto market. By June 2025, South Korea’s crypto asset market capitalization had reached 95 trillion won, or $64.6 billion. Average daily trading volume stood at $4.35 billion, showing the scale of activity in the sector.

South Korea Lifts Corporate Crypto Ban, Sets 5% Investment Limit for Firms

The Financial Services Commission recently finalized guidelines allowing listed companies and professional investors to trade cryptocurrencies. This decision ended a nine-year ban on corporate crypto investment. The move aligned with the government’s “2026 Economic Growth Strategy,” which also included stablecoin legislation and approvals for spot crypto ETFs.

Under the new rules, corporations can invest up to 5% of their equity capital annually. Investors can only invest in the top-20 cryptocurrencies by market capitalization on Korea’s five major exchanges. Approximately 3,500 entities, including publicly listed firms and registered professional investment corporations, will gain access once the rules take effect. Regulators are still debating whether dollar-pegged stablecoins such as Tether’s USDT will qualify.

South Korea has ended its nine-year ban on corporate cryptocurrency investments, allowing listed companies to invest up to 5% of their equity in cryptocurrencies. This is positive news for the entire crypto market, especially Bitcoin, as new capital entering the market will… pic.twitter.com/LAXqVcLaP5

— PiNetwork DEX⚡️阿龙 (@fen_leng) January 12, 2026

Exchanges will also be required to implement staggered execution and order size limits. Officials designed these measures to reduce risks and maintain market stability. The guidelines allow corporate crypto investment for the first time since 2017. Authorities had banned it over money laundering worries.

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