South Korea arrests police officers accepting bribes from illicit crypto operators

On November 27, South Korean authorities arrested two police officers, a superintendent, and a senior officer from South Korea for allegedly accepting bribes from the proprietors of illegal crypto exchanges that reportedly used voice phishing to launder $186 million (249.6 billion won) 

Prosecutors claimed that the senior officer provided insider investigative information in exchange for cash and expensive goods.

According to the Supreme Prosecutors’ Office of the Republic of Korea (SPO) report, Seoul Police Station Officer “G” reportedly accepted $7,500 (10 million won) in cash and expensive items during that time. The report revealed that  Chief “F” allegedly accepted $59,000 (approximately 79 million won) between July 2022 and February 2024 from the proprietors of an illegal private cryptocurrency company.

South Korean officers arrested in crypto bribery operation

Suwon District Prosecutors’ Office Criminal Division report confirmed that the authorities dismissed both officers from their jobs following their arrest.

Prosecutors stated that the two officers allegedly offered investigation information and introduced attorneys. The officers requested the unfreezing of accounts related to illegal activity and established connections with other law enforcement officials in exchange for the money.

Stadelmann supported his comment by noting that communities must make sure their local police uphold the law.

Prosecutors claimed that an unknown operator partnered with CEO “B” to plan a well-organized team to operate illegal cryptocurrency-for-cash swaps in busy locations between January and October 24. According to prosecutors, the operation included locations such as Yeoksam-dong, under the guise of gift certificate shops.

The gang, according to South Korean authorities, maintained a respectable front by putting up banners warning customers to  “Beware of Voice Phishing.” According to the report, the group turned illegal profits, primarily from voice phishing scams, into USDT.

SK Law enforcement officials froze about $1.1 million (1.5 billion won) in illegal assets, including $600,000 (800 million won) in USDT.  According to prosecutors, the group reportedly squandered or concealed the remaining $8.4 million (11.2 billion won)  in illegal proceeds. 

Cryptocurrencies drive an increase in South Korean crimes

The arrest of the two police officers follows a slew of cryptocurrency-related crimes in SK. 

On August 23, a 33-year-old South Korean national was arrested at Suvarnabhumi Airport on accusations of having ties to a contact center gang that laundered cryptocurrency into gold. The SK authorities estimate the enterprise to be worth more than 1.65 billion baht ($44.55 million) in total.

On February 6, the Criminal Court issued an arrest warrant for him on charges of impersonation and money laundering. The court also charged him with entering fraudulent data into a computer system. Additionally, the court alleged that the suspect was a member of a criminal syndicate.

Another cryptocurrency-related crime happened on November 13, 2024. SK authorities arrested 215 persons on suspicion of stealing 320 billion won ($228.4 million) in the nation’s largest cryptocurrency investment scam. 

SK Gyeonggi Nambu provincial police claimed that one of the suspects arrested was the alleged leader of a well-coordinated crime ring that marketed 28 different types of virtual tokens to over 15,000 people, promising large profits.

According to SK authorities, the accused leader, referred to as Mr A, had fled to Australia before being arrested. Yonhap news outlet reported that police seized 22 Bitcoins from Mr A’s account and filed to seize an additional $34 million.

Jin Sung‑joon, a legislator from the ruling Democratic Party of Korea, stated that there are rising concerns that cryptocurrencies are being utilized more often for illegal foreign exchange (FX) transactions and money laundering.

As previously reported by Cryptopolitan,  the Korea Financial Intelligence Unit (KoFIU) received 36,684 reports of suspicious activity from virtual asset service providers between January and August. The number increased sharply from 199 in 2021 to over 10,000 in 2022 and almost 20,000 in 2024.

Notably, 9.5 trillion ($7.1 billion) worth of crimes involving cryptocurrency were reported for prosecution over the same period.

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Source: https://www.cryptopolitan.com/south-korean-police-officers-indicted/