cryptocrime

South Korean courts have handed down prison sentences to two men involved in a large-scale voice phishing operation and subsequent money laundering using cryptocurrencies. According to the ruling, funds worth approximately $1 million in the stablecoin USDT were laundered through an illegal crypto exchange.
The main organizer of the scheme, a 41-year-old man, was sentenced to five years in prison. His subordinate and employee received a sentence of two years and eight months. Prosecutors stated that the two operated an illegal cryptocurrency exchange that served as a key conduit for laundering proceeds from voice phishing scams.

Illegal exchange used as a laundering hub
Investigators revealed that the defendants closely cooperated with an organized voice phishing group operating largely from abroad. Communication between the criminals took place via Telegram over a period of roughly three months.
The scam itself followed a familiar voice phishing pattern. The perpetrators posed as police officers or relatives in distress, deceiving victims into transferring money under false pretenses. Victims were instructed to send funds to bank accounts controlled by the illegal exchange run by the convicted men.
Once the money arrived from local banks, exchange employees immediately converted the fiat currency into USDT, the stablecoin issued by Tether. The entire process was designed to be as fast as possible in order to minimize the chances of intervention by authorities.

Funds vanished within an hour
According to prosecutors, the speed of the transfers was a critical factor. From the moment victims sent their money, it often took less than an hour for the funds to move from bank accounts through cash handling and finally into cryptocurrency form.
This rapid execution prevented banks and regulators from freezing accounts in time. Even when victims reported the fraud to police, there was virtually no window to recover the stolen funds.
Prosecutors also told the court that the voice phishing operation itself was run from overseas, though the exact location was not disclosed. The key money-laundering steps, however, were carried out through the illegal exchange in South Korea.

Court: Defendants made restitution nearly impossible
Presiding judge Lee Young-cheol stated that the court found no attempt by the defendants to mitigate the serious harm inflicted on victims. The ruling was reported by the newspaper Yeongnam Ilbo.
The judge described the crimes as particularly egregious, noting that the defendants’ actions had almost completely eliminated any chance for victims to recover their money. Both men were convicted under a special law aimed at preventing and compensating damages caused by telecommunications-based financial fraud.
Authorities also acknowledged that the exact number of victims affected by the voice phishing scheme remains unknown.

Warnings over growing misuse of stablecoins
The case highlights a broader trend that South Korean authorities have been warning about for some time. While cryptocurrency adoption in South Korea continues to accelerate, digital assets are increasingly being exploited for criminal purposes. Regulators reported a 54% year-on-year increase in suspicious crypto transactions last year.
Ministers and lawmakers are now urging faster government action, particularly with regard to stablecoins such as USDT and USDC. In September, lawmaker Jin Sung-joon warned that stablecoins are being used more frequently in foreign exchange crimes, including illegal currency trading.
He stressed the need for a coordinated and proactive strategy involving law enforcement bodies such as KoFIU and the Korea Customs Service to better track, identify, and prosecute criminal financial flows.

Lawmakers are also calling for additional policy measures to prevent illegal and unauthorized money transfers and to more effectively address financial crimes involving crypto assets.

#SouthKorea , #CryptoCrime , #CryptoFraud , #USDT , #CryptoNews

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Правоохоронні органи Південної Кореї завершили масштабну спецоперацію, в результаті якої було викрито міжнародне угруповання, що відмило понад $101,7 млн через цифрові активи. Ця справа стала однією з найгучніших у поточному році, підкреслюючи рішучість Сеула навести лад у криптопросторі.
Зловмисники розробили складну багатоступеневу систему. Вони збирали «брудні» гроші, отримані від незаконної діяльності, та пропускали їх через довгий ланцюжок транзакцій. Для приховування слідів використовувалися закордонні криптобіржі, підставні особи та спеціалізовані сервіси-міксери, які дробили суми на дрібні частини. Кінцевою метою було переведення активів у готівку або легальні інвестиції, що робило походження коштів майже неможливим для відстеження.
Проте південнокорейські кіберполіцейські змогли ідентифікувати підозрілі патерни поведінки гаманців. Це розслідування доводить, що міф про повну анонімність криптовалют поступово руйнується. Держави активно впроваджують інструменти аналізу блокчейну, що робить використання крипти для злочинів дедалі ризикованішим. Для звичайних інвесторів це позитивний сигнал: ринок стає чистішим, а маніпуляцій — менше.
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#SouthKorea #CryptoCrime #BlockchainSecurity #CryptoNews #MoneyLaundering

U.S. authorities have charged a Venezuelan national with orchestrating a large-scale money laundering operation that allegedly moved around $1 billion through cryptocurrencies and traditional financial channels. The announcement was made by U.S. officials late in the week.
According to a criminal complaint filed in federal court in Alexandria, Virginia, 59-year-old Jorge Figueira is accused of conspiracy to launder illicit proceeds. The case is being handled by the U.S. Attorney’s Office for the Eastern District of Virginia.

A complex web of accounts, wallets, and shell companies
Investigators allege that Figueira built a sophisticated infrastructure involving bank accounts, cryptocurrency exchange accounts, private digital wallets, and shell companies. This network was allegedly used to move illegal funds into and out of the United States.
Court filings state that cryptocurrencies played a central role in obscuring the origin of the money. Funds were reportedly converted into digital assets, routed through multiple wallets, and then sent to liquidity providers who exchanged the crypto back into U.S. dollars. Those dollars were subsequently deposited into bank accounts controlled by Figueira or transferred to additional recipients.
Authorities say this multi-layered process was deliberately designed to complicate transaction tracing and conceal the true source of the funds from law enforcement.

FBI uncovers massive crypto flows
The Federal Bureau of Investigation (FBI) said it identified approximately $1 billion in cryptocurrency that passed through wallets allegedly linked to the laundering network.
Investigators claim the funds were moved through dozens of transactions involving individuals and companies across multiple countries, suggesting the operation may have supported criminal activity beyond U.S. borders.

Funds sent to high-risk jurisdictions
Prosecutors also stated that a significant portion of the funds entering Figueira’s accounts originated from cryptocurrency trading platforms. Most outgoing transfers were sent to companies and individuals in the United States and abroad.
Authorities highlighted several high-risk jurisdictions where the money was allegedly sent, including Colombia, China, Panama, and Mexico.
If convicted, Figueira faces a maximum sentence of up to 20 years in prison. Any final sentence will be determined by a federal judge after considering U.S. sentencing guidelines and other legal factors.

#MoneyLaundering , #CryptoCrime , #CryptoSecurity , #FBI , #CryptoNews

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“