South Korea: Ring laundering $2.5 million for phishing gangs busted; cash, luxury watches seized

Seoul police have apprehended 11 members of a domestic money laundering ring, including its alleged leader, for facilitating the laundering of 3.5 billion won (approximately $2.5 million) in criminal proceeds for overseas phishing organizations. The group operated for about three months, from August to November last year, masquerading as a gift certificate business to obscure the origins of the funds.

According to the Seoul Metropolitan Police Agency's Financial Crime Investigation Unit, the suspects converted the illicit funds received from a Cambodia-based phishing organization into cash, purchased gift certificates, and then resold them to acquire Tether (USDT) cryptocurrency. This complex process was designed to hide the source of the money. The ring allegedly charged a 15% commission on the laundered amounts, which was then distributed among its members in cash.

During the arrests, authorities seized 593.5 million won in cash and two luxury watches valued at approximately 200 million won from the residence of the ringleader, identified only as 'Mr. K.' These assets have been secured for potential forfeiture pending the outcome of the legal proceedings.

Despite suspicions raised by banks due to the large sums being transferred, the group managed to evade detection by submitting falsified documents and claiming to be legitimate gift certificate vendors. The police are continuing their investigation into the Cambodia-based phishing organization, which is believed to have sent approximately 8 billion won in criminal proceeds to the laundering network.

"We will continue to strictly crack down on domestic money laundering organizations connected with overseas phishing groups," a police official stated. "Engaging in the purchase of gift certificates with funds transferred to accounts under the guise of a gift certificate business, and then cashing them out, can be considered complicity in money laundering as an 'enforcement agent.' Individuals should exercise extreme caution and refrain from participating in such activities."

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We will continue to strictly crack down on domestic money laundering organizations connected with overseas phishing groups. Engaging in the purchase of gift certificates with funds transferred to accounts under the guise of a gift certificate business, and then cashing them out, can be considered complicity in money laundering as an 'enforcement agent.' Individuals should exercise extreme caution and refrain from participating in such activities.