Gang Laundered 37 Billion Won in Cyber Fraud Proceeds Using Various Methods Arrested

A group that laundered hundreds of billions of won in proceeds from cyber fraud crimes has been apprehended by the police.

View original image

The Cyber Investigation Unit of the Gyeongnam Provincial Police Agency announced on November 6 that it had arrested 21 individuals, including a man in his 40s identified as A, on charges of laundering proceeds from cyber fraud crimes, and that 8 of them have been detained.

According to the police, from November of last year to October of this year, A and the others are accused of laundering a total of 37 billion won in proceeds obtained through various cyber fraud schemes, such as fraudulent investment in promising businesses and stock investment group scams, using a variety of methods.

They allegedly delivered the proceeds to their higher-ups by issuing checks or trading coins on cryptocurrency exchanges, or by establishing legitimate gift certificate companies and pretending to trade actual gift certificates in order to siphon off the money.

During this process, A and the others reportedly received a commission of 0.5 to 2.5 percent of the withdrawal amount in return for laundering the money.

Items related to laundering of funds from cyber fraud crimes seized by the police. Provided by Gyeongnam Provincial Police Agency

View original image

Upon receiving reports from victims, the police executed search and seizure warrants at over 800 financial institutions and tracked more than 1,300 cryptocurrency wallets in their investigation.

Starting with the arrest of A, who was responsible for money laundering and withdrawals, in April of this year, the police subsequently arrested a total of 21 individuals, of whom 8 were formally detained and referred for prosecution on October 31.

The police are continuing their investigation, believing that there may be additional laundered funds, and are also pursuing the organizations that commissioned the money laundering.

An official from the Gyeongnam Provincial Police Agency cautioned, "Promotional phrases such as 'risk-free, high-return investment,' 'innovative investment methods never seen before,' as well as advertisements claiming to represent promising businesses like renewable energy or impersonating celebrities, public figures, or professional investors, are highly likely to be scams."

The official added, "With the Cyber Investigation Unit at the center, all police stations in the province will join forces to respond to cyber fraud and financial crimes that threaten people's livelihoods."