South Korean police have dismantled a cryptocurrency laundering network that exploited Tether (USDT) to move 16.8 billion won (approximately $11.1 million) through a series of USDT transactions and exchange transfers.
Investigation Overview
The Seoul Metropolitan Police Agency’s criminal investigative division forwarded 23 individuals to prosecutors, charging them with breaches of the Foreign Exchange Transactions Act and the Act on Reporting and Using Specified Financial Transaction Information. Arrests included two primary suspects, identified only as A and B, who remain in detention while authorities continue to interrogate the network.
Financial Scope and Methods
Investigators traced the flow of illicit proceeds generated by a Cambodia‑based phishing syndicate, noting that the group purchased USDT, shuttled the stablecoin across domestic and overseas exchanges, and conducted illegal foreign‑exchange trades from February 2024 through April 2025. Examination of more than 11,300 accounts revealed 265 voice‑phishing and investment‑fraud schemes valued at roughly 25.7 billion won (about $17 million), which were used to obscure the origin of the crypto assets before they entered the traditional financial system.
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