https://en.sedaily.com/society/2026/03/19/police-bust-family-run-money-laundering-ring-operating-from
Police have dismantled a money laundering organization that converted voice phishing proceeds into cryptocurrency and funneled the funds overseas. The group operated an unregistered virtual asset business and currency exchange from an unmarked office in central Myeongdong, laundering criminal proceeds for voice phishing syndicates.
Seoul Jungnang Police Station announced on the 19th that it had arrested 19 individuals, including 46-year-old ringleader A, on charges of violating the Special Act on Prevention of Telecommunications-Based Financial Fraud and the Proceeds of Crime Act. Four suspects have been detained. Police seized approximately 6 billion won in criminal proceeds, including cash and precious metals.
According to police, the organization was a "family-type" money laundering ring composed of married couples and relatives. Since May last year, they operated an unregistered virtual asset business and currency exchange from an office building in central Myeongdong.
The laundering process involved three stages. Cash brought by voice phishing couriers was immediately converted into the cryptocurrency USDT (Tether), then transferred to overseas criminal organizations' digital wallets. The total criminal proceeds funneled abroad through this method is estimated at tens of billions of won.
The group also exploited the recent surge in gold and silver prices driven by U.S.-Iran tensions. Unidentified overseas entities would transfer large amounts of cryptocurrency at below-market rates to domestic unregistered virtual asset businesses. Operators then converted these into Korean won cash, which was used to purchase gold in the Jongno district. The gold was then declared to customs as legitimate exports when members departed for Hong Kong and other destinations. This scheme used cryptocurrency-laundered cash to acquire gold as a safe-haven asset.
"They exploited the rise in gold prices due to recent U.S.-Iran tensions," said Park Won-sik, head of the Criminal Investigation Division 2 at Jungnang Police Station. "They disguised the operation as importing precious metals through a domestic corporation, paid with virtual assets, and then attempted to export it back as gold."
The investigation began on January 14 following a 112 emergency call reporting that "a delivery item was suspected to be drugs." The caller was a courier who had been directed by a voice phishing organization—posing as a low-interest loan refinancing service—to deliver 10 million won in victim funds. Police arrested two additional couriers that day in Seoul's Gangnam district and Gwangju, Gyeonggi Province. Mobile phone analysis and CCTV tracking confirmed the Myeongdong office building was being used as an operations base. A 50-day stakeout revealed systematic money laundering activities.
On the 11th of this month, police simultaneously raided four locations, including the manager's residence and the unregistered virtual asset business in Myeongdong. Twelve suspects were arrested that day. Seized items included approximately 4.05 billion won in cash, silver granules (21 units of 10kg each, worth approximately 1.5 billion won), and gold bars (2 units of 1kg each, worth approximately 500 million won).
"During the operation, a motorcycle carrying cash had its compartment fly open, scattering 50 million won in bills across the street," Park said. "We were able to identify the targets through cooperation with Jungbu Police Station, which was investigating the source of the funds."
Police plan to pursue the voice phishing masterminds who fled overseas through international cooperation. Investigators will also focus on detailed analysis of cryptocurrency wallet transactions and recovering criminal proceeds through pre-indictment seizure and forfeiture measures.
