Authorities in South Korea have uncovered a massive illegal money exchange operation involving over $680 million in unregistered foreign currency transactions, primarily funneled through crypto-linked digital platforms such as Neteller Pay.
In a statement released on June 26, the Busan Western District Prosecutors’ Office confirmed it had indicted two unlicensed money exchange firms and three individuals. The suspects face charges under the Foreign Exchange Transactions Act and the Electronic Financial Transactions Act following a five-year operation from 2019 to 2024, during which they reportedly amassed more than $18.5 million in commission fees.
South Korean prosecutors seize $3.2M in crypto in illegal FX probe
South Korean prosecutors have raided a group accused of earning billions of won in fees through unregistered foreign exchange operations, seizing 4.4 billion won ($3.2 million) worth of cryptocurrencies,…
— CoinNess Global (@CoinnessGL) June 26, 2025
The illicit scheme, according to prosecutors, involved collecting Korean won from domestic clients and channeling the funds overseas via Neteller Pay—a UK-based e-wallet commonly used on international gambling platforms and for FX margin trading. These activities, banned in South Korea, were cleverly disguised through the platform to evade financial oversight and regulatory scrutiny.
Through meticulous blockchain forensics and financial account tracing, investigators tracked and confirmed the unauthorized movement of nearly $680 million. As part of the crackdown, authorities seized approximately $9.3 million in assets held under false identities. They confiscated $3.3 million worth of Ethereum hidden in private crypto wallets that suspects had used to avoid detection.
This case now stands as one of South Korea’s largest crypto-linked foreign exchange frauds, highlighting the increasing exploitation of digital assets and offshore platforms to circumvent national financial regulations. The authorities emphasized the complexity and scale of the operation, reinforcing the need for tighter controls in the evolving digital finance space.
Meanwhile, the investigation remains active, with five additional suspects under scrutiny for connections to similar illegal money transfer networks.
Adding to South Korea’s growing list of financial crimes, prosecutors have also revealed new evidence in a separate case involving a government official who allegedly embezzled ₩497.16 million (approximately $342,000) in public funds, pointing to broader systemic challenges in monitoring both public and digital financial misconduct.
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