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Seoul police break up two crypto laundering rings tied to Cambodia scams

Seoul police break up two crypto laundering rings tied to Cambodia scams

Police referred 56 suspects to prosecutors over a 16.8 billion won USDT laundering network tied to phishing, romance scams and illegal exchange services linked to Cambodia-based operations.

USDT

Fact Check
The primary Korean source Newsis confirms every key element: 23 arrested in the Cambodia-linked phishing laundering ring, a separate 33 sent to prosecutors for illegal USDT exchange, ~16.8 billion won (168억원) moved, ~11,300 accounts, and ties to voice phishing and investment scams. Yonhap independently confirms the two-organization structure and the 33-person exchange group. The Block provides an English-language secondary account with matching numbers (23, 33, 11,300 accounts, 265 scams). Multiple additional Korean outlets corroborate the 168억원 figure and 56 total arrests. The 16.8 billion won figure aligns exactly with 168억원. All claim elements are confirmed by primary reporting.
Summary

Seoul police have widened a crackdown on crypto-based money laundering tied to Cambodia-linked scam operations, referring 56 suspects to prosecutors over a network that moved about 16.8 billion won ($11.2 million) through Tether. The Seoul Metropolitan Police Agency’s Metropolitan Investigation Unit said the case involved nine suspects who received USDT from foreign exchanges and sold it on South Korean platforms, a 14-person romance-scam cell that cycled fraud proceeds through domestic exchanges, and 33 people who ran an illegal currency-exchange service for tourists and personal contacts. Investigators traced about 14 billion won through the first channel and 2.8 billion won through the second, while the illegal exchange service handled an estimated 6.3 billion won. An analysis of roughly 11,300 accounts linked to the first two groups identified 265 confirmed voice-phishing and investment-fraud cases totaling about 25.7 billion won ($17.1 million) in victim losses. Police seized about 650 million won before indictment, and the alleged organizer remains at large under an Interpol Red Notice. The case adds detail to how stablecoins can be used to recycle scam proceeds across borders, including as so-called bait funds used to fake returns and draw victims into larger deposits.

Terms & Concepts
  • Tether: A dollar-pegged stablecoin, also known as USDT, commonly used to move funds across crypto exchanges.
  • bait funds: Initial payouts used by scammers to simulate investment returns and persuade victims to send more money.
  • Interpol Red Notice: An international request to locate and provisionally arrest a wanted person pending extradition or similar legal action.