107 Virtual Accounts Used to Launder $370 Million in Illegal Gambling Profits; 19 Arrested

A sophisticated money laundering ring, operating from bases in Daegu and Busan, has been dismantled by prosecutors, leading to the arrest of 19 key members. The group is accused of laundering approximately 506.2 billion won (about $370 million USD) through 107 virtual bank accounts, collaborating closely with illegal gambling site operators.

The Gwangju Metropolitan Police Agency's Major Crimes Investigation Unit apprehended the suspects on charges including violation of the Act on the Regulation of Criminal Proceeds Concealment and involvement in organized crime. Twelve individuals were taken into custody, while seven were arrested without detention. Additionally, 160 individuals who provided access to accounts and check cards for payment were also arrested for violating the Electronic Financial Transactions Act.

Investigators revealed that the ring received illicit funds from gambling sites into the virtual accounts. They then employed a method of repeated transfers between various accounts and cash withdrawals to obscure the money's origin. The Daegu-based organization laundered 482.8 billion won using 62 accounts, while the Busan-based group handled 23.4 billion won with 45 accounts. The ringleaders negotiated laundering terms and fees directly with the gambling site operators.