South Korean law enforcement agencies are intensifying their efforts in combatting crypto-related criminal activities. Recent reports reveal that customs officials have successfully dismantled an international gambling ring that operated using USDT, a popular cryptocurrency. The operation resulted in the arrest of seven individuals, with one remaining in custody, while the Seoul Central District Prosecutors’ Office has taken charge of the case.
Illegal Gambling Ring Uncovered
Investigations uncovered that the gambling ring violated the Foreign Exchange Transactions Act. Moreover, two members of the ring have reportedly fled the country in an attempt to evade arrest. Officials have identified the detained individual as the unofficial leader of the group, and efforts are ongoing to apprehend the remaining gang members. In a press conference, customs authorities showcased seized items, including Korean Won (KRW) and US Dollar (USD) banknotes.
“The ring utilized social media platforms to attract ‘customers’ for their illegal gambling operations,”
Customs officials stated.
The ring converted the funds received to USDT, accumulating a staggering $12 million worth of the dollar-pegged stablecoin. Winners were allegedly paid in USDT tokens. To facilitate this illegal activity, the group utilized an unlawful gambling establishment in the Philippines to convert traditional currency into USDT. The ring operated from two secret offices in Seoul, South Korea, and Bonifacio Global City, near Manila, the capital of the Philippines. Authorities claimed that the group’s leader established several shell companies to engage in arbitrage crypto trading and even forged documents for fraudulent imports.
“We have confiscated materials relating to illegal remittances and a significant amount of cash totaling nearly $182,000,”
Seoul-based customs officers reported.
South Korea is renowned for its stringent gambling regulations, with only one land-based casino permitted to serve domestic customers. Authorities have consistently cracked down on online gambling platforms and unauthorized casinos for more than a decade.
Collaboration with Crypto Exchanges
Recently, South Korea’s five largest cryptocurrency exchanges pledged to cooperate with financial regulators in identifying undeclared crypto operators. This joint effort aims to enhance regulatory oversight in the crypto sector and combat illicit activities. The initiative comes after the arrest of a group posing as crypto-issuing robot developers who allegedly scammed 170 crypto investors in South Jeolla Province last month.
