"Luxury in a Penthouse With Hundreds of Billions Diverted"... 'Virtual Asset Smuggling' Ring Busted

Unregistered Crypto Business and Currency Exchange Operation
Seizure of Approximately 4 Billion Won in Cash and 210kg of Silver
Voice Phishing Kingpin Flees Overseas

A money laundering organization that laundered proceeds from voice phishing crimes through virtual assets and funneled them overseas has been apprehended by the police.

On March 19, the Seoul Jungnang Police Station announced that it had arrested 19 members of the organization on charges including violations of the Act on the Prevention of Damage from Telecommunications-based Financial Fraud, the Act on Regulation and Punishment of Criminal Proceeds Concealment, and the Act on Reporting and Use of Certain Financial Transaction Information. Among them, four individuals, including the ringleader of the money laundering group, Mr. A (46), were taken into custody.

Cash of approximately 4.05275 billion KRW and gold bars seized from a voice phishing money laundering organization by the police. Jungnang Police Station, Seoul.

According to the police, starting in May of last year, Mr. A and others operated an unregistered, signless virtual asset business and a currency exchange office in an officetel near Myeongdong, Jung-gu, Seoul. They are suspected of converting cash stolen by the voice phishing organization into Tether (USDT) and then transferring it to overseas electronic wallets, thereby laundering the criminal proceeds.

This group was structured as a 'family-type money laundering organization,' primarily composed of family members, relatives, and acquaintances. They divided roles among themselves and systematically laundered criminal proceeds. It was also found that they recently attempted a so-called 'precious metals smuggling' method, disguising transactions as imports and exports of precious metals to take advantage of the recent rise in gold prices.

This investigation began in January of this year, prompted by a 112 emergency call reporting that a delivered package was suspected to contain drugs. The police confirmed that the package actually contained 10 million won in funds from a voice phishing scam and immediately launched an investigation, apprehending both the collector and courier on the same day. Subsequent analysis of mobile phones and statements led the police to identify higher-ranking members of the organization, and CCTV footage revealed the money exchanger entering an officetel in Myeongdong. After about 50 days of stakeouts and field investigations, the police confirmed that this location served as the base of operations for the criminal activities.

On March 11, simultaneous raids were conducted at four locations, including an office and residences in Myeongdong, resulting in the arrest of 12 additional members. Authorities seized approximately 4.05275 billion won in cash, 210 kilograms of silver, gold bars, and other criminal proceeds worth a total of approximately 6 billion won. During the raids, another courier carrying a bag containing several hundred million won in cash was apprehended on the spot, indicating the ongoing operation of the organization.

Park Wonsik, Chief of the Criminal Division at Seoul Jungnang Police Station, is revealing the seized items including cash and precious metals confiscated from a money laundering organization on the 19th. Photo by Park Hosu

The police also confirmed evidence that Mr. A and his associates maintained a lavish lifestyle using criminal proceeds. The group owned high-value real estate, including an apartment overlooking the Han River worth around 10 billion won and a high-rise penthouse.

The scale and profits generated from the money laundering transactions were also found to be significant. Police identified a total of 21 electronic wallets, and an analysis of the transaction records from just four wallets used recently showed that, between March 1 and March 10, virtual assets worth approximately 25.3 billion won were traded over the ten-day period. A police official explained, "Based on this, it is estimated that transactions worth around 75 billion won are conducted monthly."

Meanwhile, the overall leader of the voice phishing organization, Mr. B, has fled overseas. The police are working with Interpol and other international agencies to pursue the fugitive, while also conducting a detailed analysis of virtual asset wallet transactions and fund flows to track down additional accomplices and are focusing investigative resources on recovering criminal proceeds through pre-indictment confiscation and forfeiture.

This content was produced with the assistance of AI translation services.