South Korean Police Arrest 23 in $11M USDT Laundering Case Linked to Phishing Network

South Korean police have arrested 23 individuals accused of laundering cryptocurrency tied to a Cambodia based phishing and scam organization. The arrests were confirmed by the Seoul Metropolitan Police Agency, which said the suspects helped move illegal proceeds using USDT stablecoins across domestic and overseas exchanges.

Authorities reported that between February 2024 and April 2025, the group processed approximately 16.8 billion won, or about $11.1 million, in criminal funds. The operation involved purchasing USDT and transferring assets through multiple crypto platforms to obscure the origin of the money.

Investigators also found that around 11,300 accounts were used in the laundering network, which was linked to roughly $17 million in stolen funds across 265 phishing and investment scam cases.

Police Seize Funds and Expand Investigation

During the investigation, authorities seized approximately 650 million won (about $430,000) in criminal proceeds. However, the alleged ringleader of the operation remains at large and is currently subject to an Interpol Red Notice.

In addition to the main suspects, police also arrested 33 other individuals accused of illegally providing currency exchange services using USDT for tourists and acquaintances. Authorities say these services were part of the broader laundering structure supporting the criminal network.

The case highlights ongoing concerns about the use of stablecoins in cross border money laundering, particularly in regions where digital assets are increasingly used to move funds quickly across multiple exchanges.