South Korean police arrest 22 for laundering $30 million via fake gift certificate firm

South Korean police have arrested 22 people, including the alleged ringleader, for laundering around 41.5 billion won (approximately $30 million USD) in criminal proceeds. The suspects operated a fake gift certificate company to disguise funds obtained from various financial fraud schemes, including phishing and fake investment websites.

The investigation began after police apprehended an individual involved in transferring a "shell account" (a bank account opened in another person's name). This led authorities to uncover the money laundering organization behind the operation. The ringleader reportedly established the fraudulent gift certificate company in October 2024, using corporate accounts to receive and disguise the illicit funds as legitimate transactions.

To further obscure the money trail, the organization expanded its operations by recruiting more members starting in February 2024. They utilized numerous shell accounts, distributing the laundered funds across multiple accounts to avoid detection. The ringleader was based in Yeongju, North Gyeongsang Province, coordinating the extensive money laundering network.