South Korean Investigators crackdown on 33 suspects that allegedly conducted $1.5 billion in illicit BTC transactions as we read more in today’s Bitcoin scams.
Seoul’s Central customs, the South Korean Investigators, in this case, started investigating 33 people involved in illegal overseas crypto transactions worth $1.5 billion. The authorities fined 15 individuals and started prosecuting 14 of them while the remaining 4 are still under investigation. The daily newspaper in South Korea reported that the authorities arrested 33 individuals under accusations of crimes related to virtual assets like Money laundering and fraud. Over the past two months, the suspects engaged in illegal offshore crypto transactions equaling a total of $1.5 billion.
The investigation categorized the funds as illegal foreign currency exchange where the merchants paid someone else to transfer the funds withdrawn after trading on a platform. The prosecution claimed that the suspects used another $683 million to falsify their overseas remittance records when buying digital assets abroad. The individuals spent the remaining $83 million on cash withdrawals from overseas by using credit cards issued in the country to get more crypto aborad. The report also showed that one of the suspects is an owner of a foreign crypto exchange and he either transferred or hand-delivered $261 million in 17,000 transactions via a local crypto trading venue to his overseas client that wanted to bypass the law.
After gaining more profit from the illicit actions, the authorities caught him and his three other companions. They will be prosecuted for violating the Foreign Exchange Transaction Act. The authorities discovered that the owner of the Korean company made $8.7 million from overseas BTC trading which was based on fake invoices and bills so now he will face a penalty of $10.5 million. In another case, a university student will have to pay $1.4 million because he netted about $1.7 million after he sent $35 million from Korea to overseas accounts. The student also falsified remittance records and lied that the funds were for living expenses and his studies.
Korean exchanges are under scrutiny with the new legislations.
Another worker was slammed with a fine of $1.3 million after profiting from BTC trading and he even had a group of people helping him operate with $27 million withdrawn from ATMs abroad by using a credit card from South Korea. The Seoul officials commented on the news:
“Virtual asset transfers under the guise of trade, travel or study expenses are strictly prohibited. Violators will be subject to criminal prosecution or fines.”