South Korea dismantles $102 million cryptocurrency laundering network disguised as medical tourism

Source: Yellow Original Title: South Korea dismantles $102 million cryptocurrency laundering network disguised as medical tourism

Original Link: South Korean customs authorities have dismantled an international cryptocurrency laundering network that processed 148.9 billion won (101.7 million dollars) through unauthorized currency exchange schemes.

Three Chinese nationals were referred to prosecutors on Monday for violating the Foreign Exchange Transactions Act, according to the Korea Customs Service.

Allegedly, the suspects operated between September 2021 and June 2025, disguising illicit fund transfers as legitimate cross-border payments for cosmetic surgeries and overseas education expenses.

What happened

The laundering operation exploited South Korea’s booming medical tourism sector to hide illegal currency transactions.

According to investigators from the Seoul Customs Office, foreign clients transferred currencies such as US dollars and Chinese yuan for services at South Korean institutions.

The operators then purchased cryptocurrencies at foreign exchanges, transferred the digital assets to wallets in South Korea, and converted them to Korean won on local platforms.

To evade oversight, the suspects distributed the converted funds across numerous domestic bank accounts.

Why it matters

The operation comes a week after the Korea Customs Service announced ongoing inspections targeting illegal currency transactions, following the discovery of a $290 billion gap between trade income and declared trade values.

An independent currency inspection in 2025 found that 97% of surveyed companies in a sector engaged in illicit transactions totaling 2.2 trillion won.

South Korea’s domestic cryptocurrency market reached a capitalization of 95 trillion won (64.6 billion dollars) by June 2025, with an average daily trading volume of $4.35 billion, according to data from the Financial Services Commission.

The case highlights how criminals increasingly combine cryptocurrencies with traditional banking channels and false documentation to exploit regulatory gaps between digital asset oversight and currency controls.

Prosecutors are considering charges related to illegal currency trading, money laundering, and financial reporting violations, and the suspects could face lengthy prison sentences if convicted.