South Korean police have dismantled a major cryptocurrency laundering operation, arresting 23 suspects and seizing assets in a case that highlights the growing use of stablecoins in transnational crime. The Seoul Metropolitan Police Agency’s criminal investigative division announced on Tuesday that the group moved 16.8 billion won ($11.1 million) in Tether (USDT) through a network of domestic and overseas exchanges on behalf of a Cambodia-based phishing organization.
Investigators said the laundering ring operated from February 2024 to April 2025. Acting under instructions from a suspected ringleader—identified only as “C” and now subject to an Interpol Red Notice—the network purchased USDT and shuttled it between platforms to disguise the trail. Two alleged key figures, A and B, were detained. Police also obtained pre-indictment orders freezing about 650 million won ($430,000) in criminal proceeds.
The probe’s scale became clear when authorities examined more than 11,300 accounts linked to the laundering operation, uncovering 265 cases of voice phishing and investment fraud with an estimated $17 million in total stolen funds. In a parallel action, 33 additional individuals were arrested for providing illegal USDT-based currency exchange services—accepting commissions from tourists and acquaintances to convert a further 6.3 billion won ($4.2 million) into fiat or foreign currency without authorization.
The case is part of a wider crackdown by South Korean authorities. Earlier this month, blockchain analytics firm Chainalysis signed a cooperation agreement with the Korean National Police Agency to train investigators on virtual asset crimes. A dedicated task force now targets unregistered exchange operators and the misuse of stablecoins for money laundering. Meanwhile, police recently searched Bithumb offices as part of an unrelated probe into allegations that a lawmaker helped his son secure a job at crypto firms. A police official warned that conducting crypto transactions on behalf of others can be punishable under current law, signaling that enforcement will only intensify.
