A Korean probe uncovers $1.48 billion in illicit foreign cryptocurrency transactions.

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In South Korea, more than 30 people are facing penalties and punishment for allegedly violating the country’s ban on international cryptocurrency transactions.

In South Korea, an interagency investigation into alleged crypto fraud and money laundering resulted in the finding of 1.69 trillion won (about $1.48 billion) in illicit foreign cryptocurrency transactions.

According to The Korea Times, 33 people have been implicated by the Seoul Central Customs for contravening the country’s ban on overseas crypto trading.

Lee Dong-hyun of the Seoul Central Customs investigative unit indicated that the suspected offences committed fell into three categories.

The first group consisted of individuals who engaged in international crypto exchange trading, which is illegal in South Korea. These individuals reportedly paid third-party companies over $700 million to transfer cash withdrawn for foreign bitcoin exchanges.

The second group, according to Dong-hyun, included those who utilised fake remittance records to purchase cryptocurrency from offshore exchanges. In one of the cases, a local exchange operator reportedly used $308 million in forged invoices to transfer cash to an offshore business.

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The money were allegedly used to purchase cryptocurrency tokens from foreign exchanges. Given the Kimchi premium in South Korea, which frequently causes crypto values to skyrocket in the nation, the exchange operator in issue reportedly made over $9 million in capital gains.

In the third category, Dong-hyun revealed that some people used Korean credit cards to make cash withdrawals abroad for the purpose of buying crypto from overseas crypto exchanges.

“Virtual asset transfers under the guise of trade, travel or study expenses are strictly prohibited,” the Customs’ investigator stated, adding: “Violators will be subject to criminal prosecution or fines.”

Indeed, 15 of the 33 have been punished, with the remaining 14 sent to state prosecutors. Four persons are still being investigated, according to Dong-hyun.

South Korean authorities have recently tightened regulations on cryptocurrency exchanges in the nation. Platforms have been compelled to delist many cryptocurrency trading pairings that authorities and banking partners considered dangerous.

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Meanwhile, a recent research warned of rising debt among South Korea’s young adult population as a result of growing investments in cryptocurrency, real estate, and equities.

 

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