Seoul investigators say they disrupted a secret money transfer network that moved nearly 150 billion won — about $102 million — to and from South Korea using a mix of mobile payment apps and cryptocurrencies.
Reports say three people have been formally charged under the country’s foreign exchange laws after an investigation traced the scheme over several years.
How money is transferred via applications
According to the Korean Customs Service, the group collected money from customers using platforms such as WeChat Pay and Alipay, and then used those funds to purchase virtual currencies abroad.
These currencies were transferred to digital wallets in Korea and converted into Korean won through several bank accounts.
The style was basic and precise. Cash or mobile transfers arrive from abroad. Cryptocurrency purchases were followed in several countries to avoid any regulator seeing the full trail.
Finally, the money was transferred to local accounts under different names. Investigators say this happened over a long period, from September 2021 until June of last year.
Covering the tracks with daily costs
According to reports, the gang concealed the source of the funds by disguising the transfers as ordinary expenses – plastic surgery payments, overseas study fees, and trade-related fees. These stickers made the flow look normal on paper and helped the group pass routine checks.
Bank transfers were layers of small, seemingly legitimate payments. This made detecting suspicious activity more difficult until customs officials pieced together patterns across accounts and platforms.
At that point, the scope became clear: these were not isolated transfers, but rather an interconnected series of transactions designed to launder large sums.
Image: Getty Images
What the authorities recovered
Investigators arrested three Chinese nationals and put them on trial, saying the suspects handled the bulk of the scheme’s operations.
Records show that nearly 150 billion won was transferred in the period under review. The authorities have opened cases under the Foreign Exchange Transactions Act and are seeking to trace the remaining funds.
This case underscores how easy it is to use cross-border payment tools and cryptocurrency markets together.
Regulators in Korea have tightened rules for both mobile wallets and exchanges in recent months, and courts have allowed cryptocurrency assets to be seized in criminal investigations. This legal background helped the Customs Office act when patterns emerged.
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