Group Accused of Making 279.6 Billion Won Through Crypto-Based Illegal Currency Transfers and Sanctioned-Country Car Exports

South Korean customs authorities have uncovered an alleged scheme that combined illegal used-car exports with cryptocurrency-based currency transfers. The group allegedly exported 1,024 used cars with engines larger than 2,000cc to Russia and Belarus, both subject to international sanctions.

Incheon Customs referred the head of an export company in his 40s and three people linked to a freight-forwarding company to prosecutors without detention. It also imposed a 11 billion won administrative fine for violations of the Foreign Exchange Transactions Act.

The alleged exports took place from March 2024 to December of last year without approval from the Ministry of Trade, Industry and Energy. Investigators say overseas buyers ordered vehicles through social media, after which the group prepared trade documents that falsely described the destination as a third country. The freight forwarder allegedly produced separate documents for customs submission and the actual shipment to the sanctioned countries.

With ordinary transfers blocked by international financial sanctions, the group allegedly accepted payment in cryptocurrencies including the stablecoin Tether, or USDT. The money passed through wallets operated by an unregistered domestic foreign-exchange network before being sold on a South Korean exchange and converted into won.

Customs investigators said the cryptocurrency payments covered 4,836 vehicles, including legally permitted cars with engines of 2,000cc or less, and totalled 279.6 billion won. After receiving a tip in August last year, authorities searched business premises, conducted digital forensics and traced the cryptocurrency flows. Incheon Customs investigation chief Kim Jae-cheol said officials would pursue new foreign-exchange crimes using cryptocurrency and track criminal proceeds through transaction analysis.

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We will promptly identify new foreign-exchange crimes using cryptocurrency and indirect exports, and track criminal proceeds to the end by using transaction-tracing techniques.