Gift Certificates, Cash, and Back to Crypto... Money Laundering Ring Referred for Detention

Laundered 3.5 Billion KRW in Criminal Proceeds; 8 Arrested and Referred to Prosecution
Charged with Violating the Act on the Prevention of Damage from Telecommunications-Based Financial Fraud
861 Million KRW in Criminal Proceeds Seized Before Indictment

A group that laundered criminal proceeds of a Cambodian voice phishing organization through gift certificates, cash, and virtual assets and took commissions has been referred to the prosecution.

The Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency announced on the 18th that it had arrested and referred to the prosecution eight members of a money laundering ring, including the ringleader, Mr. A (36), on charges of violating the Act on the Prevention of Damage from Telecommunications-Based Financial Fraud and the Act on Regulation of Concealment of Criminal Proceeds. Three additional members have been referred without detention.

The Financial Crime Investigation Unit of Seoul Metropolitan Police Agency confiscated 593.5 million KRW in cash, two luxury watches worth approximately 200 million KRW, and other items at the scene where they apprehended a member of an organization who sent laundered funds to a phishing group in Cambodia in November last year. Seoul Metropolitan Police Agency

According to the police, from August to November last year, Mr. A and his accomplices are suspected of laundering 3.5 billion KRW in criminal proceeds from the Cambodian phishing organization by converting them into gift certificates, cash, and the virtual asset Tether (USDT).

Investigations revealed that Mr. A and others opened bank accounts under the names of fictitious gift certificate businesses, received criminal proceeds from the phishing organization into these accounts, withdrew the funds, and used them to purchase gift certificates. They then sold the gift certificates for cash, purchased Tether with that cash, and remitted the virtual assets back to the phishing organization, thereby evading money tracing.

Mr. A and his group established a five-tier hierarchy with bases in Songpa-gu, Seoul, and Seongnam-si, Gyeonggi Province, with the ringleader at the top. Under the ringleader were two coordinators who communicated with the Cambodian phishing organization, a withdrawal supervisor in charge of recruiting withdrawal runners and collecting funds, a withdrawal team leader who collected cash from each withdrawal runner, and six withdrawal runners who directly withdrew cash, laundered it through gift certificates, and handed it over to the team leader. Four members, including Mr. A, who were former gang members and friends, recruited acquaintances and assigned them roles to carry out the operation. All suspects were in their 20s and 30s.

Lee Gyehyung, head of the Phishing Investigation Division 2 at the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency, is conducting a briefing at the Mapo Government Complex in Mapo-gu, Seoul, on the morning of the 18th. Photo by Oh Jieun

It was found that Mr. A and his group took about 15% of the laundered criminal proceeds as a commission. The commissions were distributed in cash, often in areas not covered by CCTV. The ringleader and two coordinators received 11%, the withdrawal supervisor and team leader received 1% each, and the remaining 2% was divided among the six withdrawal runners.

The police launched their investigation in mid-November last year after receiving a tip-off. They identified the gift certificate business accounts used in the crime, analyzed the flow of funds, and tracked down the identities of the members using CCTV footage and other methods. Starting with the ringleader in December of the same year, the police arrested and detained the members one after another. The authorities also seized 861 million KRW in criminal proceeds taken as commissions before indictment.

A police official stated, "We will respond strictly to domestic money laundering organizations linked to overseas criminal groups," and added, "Opening an account under the name of a gift certificate business and purchasing or exchanging gift certificates with deposited funds will be recognized as involvement in money laundering of criminal proceeds and may result in punishment as an accomplice."

This content was produced with the assistance of AI translation services.