South Korean police conducted an operation that led to the seizure of cryptocurrency worth up to 4.4 billion won from an illegal exchange operator.
Fraudulent Exchange Scheme
According to a report from Yonhap, authorities raided a syndicate that allegedly generated hundreds of billions of won by operating a fraudulent foreign crypto exchange. Police arrested two crypto exchange firms and three operators on charges of violating the Foreign Exchange Transactions Act and the Electronic Financial Transactions Act.
Asset Seizure
During the raid, authorities confiscated $3.2 million in Ethereum (ETH) kept in crypto wallets by the suspects. The group reportedly attempted to launder the funds in hopes of hiding them from investigative authorities. Officials confirmed that three unregistered money changers had transacted a total of 943.4 billion won, equivalent to about $694.5 million.
Investigation and Consequences
Throughout the investigation, it was revealed that funds received from fraud victims were converted into Nettel Pay and used on overseas gambling sites. Back in February, South Korean prosecutors launched a dedicated joint investigation unit focused on virtual asset-related crimes.
The investigative actions and asset seizures highlight the increasing concern of South Korean authorities regarding cryptocurrency fraud.