South Korean prosecutors arrest two law enforcement officials in a crypto laundering probe linked to voice phishing and unlawful exchanges.
South Korean authorities are inspecting a main corruption case tied to unlawful crypto exchanges and voice phishing schemes.
The investigation exhibits how prison teams used digital belongings to disguise funds, whereas two law enforcement officials accepted cash and items to guard criminals.
South Korean Police Officers Arrested For Crypto Bribes
Two law enforcement officials, recognized as a superintendent and a senior officer, had been arrested on November 27.
Prosecutors mentioned each officers accepted cash from operators who ran unlawful crypto exchanges. These exchanges helped transfer proceeds from a big voice phishing community that processed about $186 million.
BREAKING:
Two South Korean law enforcement officials have been charged with accepting bribes and serving to run a $186 million crypto laundering operation.
— WF (@WhaleFUD) November 28, 2025
The primary, referred merely to as “Officer G” accepted money and luxurious items price about $7,500. The opposite, “Chief F” acquired round $59,000 between July 2022 and February of final 12 months.
Prosecutors mentioned the officers supplied investigative particulars and help in change for cash. In addition they linked the suspects to attorneys, requested for account unfreezing and linked them with different regulation enforcement workers.
Each officers have been dismissed from their jobs.
How The Unlawful Crypto Community Operated
Prosecutors mentioned an unknown operator labored with one in all their purchasers, “CEO B” to handle a crew that ran unlawful cash-for-crypto exchanges.
These operations ran from January to October of final 12 months, and the group positioned these exchanges in busy areas reminiscent of Yeoksam-dong and disguised them as present certificates retailers.
In addition they positioned indicators that warned prospects to watch out for voice phishing to seem reliable.
The group transformed earnings from voice phishing into USDT and Officers discovered that about $1.1 million in belongings had been frozen throughout the investigation. This included $600,000 held in USDT, and prosecutors mentioned the group spent or hid one other $8.4 million.
Komodo Platform CTO, Kadan Stadelmann, commented that sharing pockets particulars can push suspects towards mixers and privateness instruments.
He added that this weakens anti-money laundering work. He additionally burdened that communities should anticipate their police to observe the regulation.
Associated Studying: South Korea Sees Spike in Suspicious Crypto Transactions
Rising Crypto Crime Instances Throughout South Korea
The current arrests observe a rise in crypto-linked crimes throughout the nation. Authorities have seen a number of instances the place criminals used digital belongings to maneuver or disguise funds.
Earlier this 12 months, a South Korean nationwide was arrested at Suvarnabhumi Airport on August 23. He was linked to a gaggle that laundered crypto into gold price greater than $44 million.
The Prison Court docket charged him with impersonation, cash laundering and inputting fraudulent knowledge into a pc system.
One other case surfaced on November 13 of final 12 months, when authorities arrested 215 folks within the nation’s largest crypto funding rip-off. The group stole about $228 million from greater than 15,000 victims and police mentioned the ring marketed 28 tokens and promised giant earnings.
The chief, often called Mr A, fled to Australia earlier than being arrested. Yonhap reported that police seized 22 Bitcoins from his account and filed to grab one other $34 million.
Lawmakers say these instances present an increase within the misuse of digital belongings. Democratic Occasion legislator Jin Sung-joon mentioned that cryptocurrencies are showing extra typically in unlawful international change actions and cash laundering.
Total, the bribery case exhibits how prison teams adapt rapidly. It additionally exhibits how regulation enforcement should keep alert as these strategies develop extra in complexity.