South Korea’s Crypto Platforms File Record 36,684 Suspicious Transaction Reports in 2024
According to the Financial Intelligence Unit, reports of suspicious crypto transactions in South Korea from January to August 2025 exceeded totals from the previous two years combined, with most cases linked to illegal foreign exchange remittances.
South Korean authorities reported 36,684 suspicious transaction reports (STRs) filed by virtual asset service providers between January and August 2025, surpassing the combined figures of 2023 and 2024. Officials highlighted that over 90% of crypto-related crimes since 2021, totaling $7.1 billion, stemmed from illegal foreign exchange remittances known as hwanchigi. A recent case involved the illegal transfer of $42 million using Tether (USDT) between South Korea and Russia, with two Russian nationals accused of conducting more than 6,000 illicit transactions. Lawmakers urged stronger enforcement measures to combat disguised remittances and emerging foreign exchange crimes.
- Suspicious Transaction Report (STR): A mandatory report filed by financial or crypto service providers when they detect potential money laundering or terrorist financing activities.
- USDT (Tether): A stablecoin pegged to the U.S. dollar, often used for trading and transfers in the cryptocurrency market.
- Hwanchigi: An illegal foreign exchange remittance scheme where funds are moved through unofficial channels, often involving crypto conversions and cross-border transfers.