Yeliz Akmaca 
South Korea customs authorities uncovered a massive crypto money-laundering network worth $101.7 million (148.9 billion won). Yonhap News Agency reported that the Korea Customs Service (KCS) referred three individuals to prosecutors.
Last week, the agency revealed a $290 billion gap between reported trade values and bank records. As a result, KCS announced year-round intensive inspections to tackle illegal money flows.
Cosmetic Surgery Used to Mask Transfers
From September 2021 to June 2025, the network moved crypto assets from abroad into South Korean digital wallets. Then, it converted the funds into local currency.
To disguise the transfers, suspects labeled them as cosmetic surgery or education expenses. Consequently, authorities had difficulty detecting the flow at first.
Key Details of the Operation
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Route Tracked: Crypto assets were bought in multiple countries and transferred into South Korean accounts.
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Illegal Scheme: Investigators believe the network exploited foreign exchange fluctuations to move capital overseas.
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Market Context: South Korea’s crypto market reached $64.6 billion in June 2025. Daily trading averaged $4.3 billion, explaining why stricter oversight is expected.
Eyes on New Regulations
The South Korean Supreme Court ruled that Bitcoin can be seized as an asset. This strengthened the legal basis for prosecuting crypto-based money laundering.
Moreover, a 2025 inspection found that 97% of examined companies were linked to illicit transactions. KCS officials announced intensified inspections targeting underground banking operations that threaten foreign exchange stability. As a result, those relying on crypto anonymity face increasing scrutiny.
Crypto Market Under Increased Oversight
Following the network’s collapse, the market is closely watching KCS’s regulatory measures. South Korea remains a global crypto leader, but rising transaction volumes have increased the need for tighter regulation.
Supreme Court rulings empowering authorities to seize crypto assets have further strengthened prosecutorial control. Therefore, KCS has made it clear that it will take a zero-tolerance approach to illegal underground banking. Investors now monitor how these inspections will affect local liquidity and pricing.
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