South Korean prosecutors have charged two senior police officials and five civilians for alleged ties to a crypto-linked money laundering network tied to voice phishing scams.
Key Takeaways:
- Two senior South Korean police officials and five crypto-linked figures were indicted in a bribery and money-laundering case.
- Prosecutors allege officers took cash and luxury goods in exchange for internal investigative information and favors.
- The scheme is tied to 249.6 billion won in voice-phishing funds laundered through cryptocurrencies.
The Suwon District Prosecutors’ Office Criminal Division 2 said the indictments were filed without detention and include violations of the Act on the Aggravated Punishment of Specific Crimes and the Act on the Regulation and Punishment of Criminal Proceeds Concealment, according to a Thursday report from The Chosun Daily.
Former Police Chief, NPA Officer Charged in Crypto Bribery Ring
Those charged include a former police station chief, identified as A, and a former officer from the National Police Agency, identified as B.
Prosecutors say both men accepted money and luxury goods from executives at a cryptocurrency business in return for sensitive investigative details and operational favors.
Five others, including a crypto company operator, C, and a chief executive, D, were also indicted for allegedly offering bribes and laundering criminal proceeds through digital assets.
Investigators allege that A received a total of 79 million Korean won between July 2022 and July of last year after being introduced to C by an official at a domestic virtual asset exchange.
In exchange, A is accused of providing investigative information and “conveniences,” including checking whether officers familiar with him were involved in C’s case and introducing lawyers to blunt the probe.
Prosecutors claim A was enticed with promises of access to coins before exchange listings and assurances that investments would be refunded if they failed.
B allegedly received goods and favors worth 10 million won across roughly ten occasions from February last year through February this year.
According to prosecutors, B was introduced by A to C and D and subsequently obtained designer items such as wallets, shoes and coats.
In return, B is accused of confirming case progress and requesting the lifting of payment suspensions on accounts allegedly tied to the crimes.
Authorities say the crypto executives ran a laundering operation that converted 249.6 billion won in voice phishing proceeds into digital assets between January and October of last year.
The prosecution estimates illegal profits at 11.2 billion won and has imposed seizure and asset-preservation measures on 1.5 billion won by tracking hidden properties.
South Korea To Sanction Crypto Exchanges Over AML Failures
As reported, the South Korean financial watchdog is preparing a fresh round of penalties for domestic virtual asset exchanges, stepping up its campaign against anti-money laundering failures that regulators say threaten the integrity of the country’s fast-growing crypto market.
Financial authorities are expected to issue both institutional and individual sanctions, along with fines, against major trading platforms that breached anti-money laundering obligations.
The Korea Financial Intelligence Unit, or FIU, is moving through cases in the order of its on-site inspections, effectively using a first-in, first-out approach.
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