Seoul investigators say they have disrupted a secret money-transfer network that moved roughly 150 billion won—about $102 million—into and out of South Korea using a mix of mobile payment apps and cryptocurrencies. Reports say three people have been formally accused under the country’s foreign exchange laws after a probe that traced the scheme over several years. How Money Moved Through Apps According to the Korea Customs Service, the group collected money from customers using platforms like WeChat Pay and Alipay, then used those funds to buy virtual coins abroad. Those coins were shifted into digital wallets in Korea and converted to Korean won through many bank accounts. The pattern was basic and careful. Cash or mobile transfers arrived from overseas. Crypto purchases followed in multiple countries to avoid any one regulator seeing the full trail. Finally, the funds were funneled into local accounts under different names. This took place over a long window, from September of 2021 until June of last year, investigators say. Covering Tracks With Everyday Costs According to reports, the ring hid the origin of money by dressing transfers up as ordinary expenses — payments for cosmetic surgery, fees for overseas study, and trade-related charges. Those labels made the flows look normal on paper and helped the group slip past routine checks. Bank transfers were layered with small, seemingly legitimate payments. That made suspicious activity harder to spot until customs officers pieced together patterns across accounts and platforms. At that point, the scope became clear: these were not isolated transfers but a linked series of transactions designed to wash large sums. What Authorities Recovered Investigators arrested and referred three Chinese nationals for prosecution, saying the suspects handled the bulk of the scheme’s operations. Records show almost 150 billion won was moved in the period under review. Authorities have opened cases under the foreign exchange transactions law and are seeking to trace the remaining funds. The case underlines how easy it can be for cross-border payment tools and crypto markets to be used together. Regulators in Korea have been tightening rules for both mobile wallets and exchanges in recent months, and courts have allowed seizures of crypto assets in criminal probes. That legal backdrop helped the customs office act when the patterns surfaced. Featured image from Dao Insights, chart from TradingView
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