Why did South Korean police charge 23 people in the crypto laundering case?

South Korean police charged 23 individuals over allegations that they helped launder US$11.1 million linked to a Cambodia-based phishing operation. Authorities said the group used cryptocurrency transactions to move funds between domestic and overseas exchanges.

How was Tether (CRYPTO) allegedly used in the laundering scheme?

Authorities said Tether (CRYPTO) was purchased and transferred between South Korean and foreign crypto exchanges before being converted into foreign currency or Korean won. Police allege the activity occurred between February 2024 and April 2025

What was the scale of the alleged fraud linked to the investigation?

Investigators reviewed more than 11,300 accounts and identified 265 suspected fraud cases worth approximately US$17 million. Police also froze about US$431,000 in alleged criminal proceeds during the investigation.

What concerns did Chainalysis raise about scam compounds in Southeast Asia?

Chainalysis said scam compounds and associated laundering networks remain active across Southeast Asia despite increased enforcement efforts. The company described the ecosystem as a persistent challenge because criminal groups continue to adapt and relocate operations.

What actions have authorities taken against regional crypto scam networks?

Authorities in multiple countries have increased enforcement against crypto-linked scam compounds operating in Cambodia, Laos and Myanmar. The United States has reported more than US$580 million in frozen, seized or forfeited cryptocurrency connected to these networks.

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South Korea charges 23 in crypto laundering case

Written by Jon CuthbertPublished Jun 17, 2026, 6:50 AM

South Korean police charged 23 people over an alleged crypto laundering network linked to a Cambodia-based phishing operation.
Authorities said the group moved US$11.1 million through Tether using domestic and overseas crypto exchanges.
Investigators said the case highlights ongoing concerns about cross-border crypto fraud and money laundering networks.

South Korean police charged 23 people accused of laundering funds linked to a Cambodia-based phishing operation that allegedly moved US$11.1 million through cryptocurrency transactions.

Authorities said the group purchased Tether, transferred it between domestic and foreign exchanges, and converted the funds into foreign currency or Korean won between February 2024 and April 2025.

“Acting as an agent for another person's virtual asset trading or exchanging virtual assets for Korean Won can also be subject to punishment,” said the Seoul Metropolitan Police Agency.

Police detained two suspects, referred 23 individuals for prosecution, identified 33 additional suspects in separate illegal crypto exchange activities, and froze approximately US$431,000 in alleged criminal proceeds.

Investigators linked more than 11,300 accounts to the operation and identified 265 suspected fraud cases worth about US$17 million, while the alleged ringleader remains the subject of an Interpol Red Notice, and following the announcement there was no immediate market reaction in Tether.

Chainalysis said scam compounds and related laundering networks remain active across Southeast Asia despite increased international enforcement efforts targeting fraud and cybercrime operations.

Authorities in several countries have recently intensified action against scam compounds, with the United States reporting more than US$580 million in frozen, seized or forfeited cryptocurrency linked to networks operating in Cambodia, Laos and Myanmar.