South Korea Crypto Money Laundering Cases Surge 152-Fold, "Money Changing" Methods Involve $6.4 Billion

TechFlow news, August 11, according to BeInCrypto reports, a cross-border money laundering method named "Hwanchigi (money exchange)" has become a core method of crypto crime in South Korea. Between 2021 and August 2025, the amount of illegal crypto transactions involved in this method reached up to $6.4 billion, accounting for more than 90% of the total $7.1 billion in illegal crypto transactions in South Korea during the same period. This method transfers illegal funds overseas via crypto transfers, bypassing South Korea's regulated banking system.

In the first half of 2026, there were 1,214 cases of virtual asset money laundering in South Korea, a 152-fold surge compared to only 8 cases in the full year of 2025, accounting for 79.4% of the total crypto crime during the same period. USDT is the primary criminal medium. However, law enforcement efficiency is severely lagging, with only 18 people arrested in the first half of the year, far lower than the 42 people in 2023. South Korea Customs seized illegal foreign exchange transactions totaling 7.2 trillion won (approximately $49.2 billion) during the same period, with over 90% of the involved funds flowing through unlicensed channels.