South Korean police have arrested 23 people accused of laundering and exchanging illegal funds from a Cambodia-based phishing operation. The group is suspected of moving billions of won through virtual asset exchanges, mainly using crypto assets like Tether (USDT).
The Seoul Metropolitan Police said on June 16 that key members of the group have been detained and are now facing charges under foreign exchange and financial information laws.
South Korean police arrest 23 individuals in $11 million USDT laundering case: report. pic.twitter.com/ncs8X05AQk
— Web3 Grinders Community (@web3_grinders_) June 16, 2026
Crypto laundering network moved ₩25.7 billion
Police say the group helped launder about ₩25.7 billion ($18 million) in criminal funds linked to voice phishing and investment scams. They allegedly used Tether (USDT) to move money between domestic and overseas crypto exchanges. The suspects followed instructions from a ringleader based in Cambodia.
Investigators also found that around 16.8 billion won was processed through crypto trading routes between February 2024 and April 2025.
How police tracked more than 11,000 crypto accounts
Authorities analysed over 11,300 bank and exchange-linked accounts tied to the operation. This helped them identify 265 fraud cases connected to phishing scams.
Police also secured about ₩650 million in criminal proceeds through pre-trial asset freezing. An Interpol Red Notice has been issued for the main suspect, who is still on the run.
Officials say the group also handled an additional ₩6.3 billion in illegal virtual asset exchanges for foreign tourists and contacts.
Why are stablecoins like USDT used in cross-border crime
The case highlights how stablecoins such as Tether are increasingly used in cross-border financial crime. Because USDT can move quickly between exchanges without traditional banking checks, it is often used to transfer funds across countries.
South Korean police warned that even acting as a middleman in crypto exchanges can lead to criminal charges if linked to illegal activity.
Authorities are increasing monitoring of crypto platforms as phishing syndicates continue to shift operations from banks to digital asset networks. The investigation is ongoing as police continue tracking the Cambodia-based ringleader and other possible partners.
Notably, South Korean authorities launched the country’s first known investigation into users of crypto-powered prediction market platform Polymarket, marking a new step in the government’s efforts to regulate blockchain-based financial activities.
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