South Korean authorities uncover a $100-110 million underground remittance operation involving digital assets. Three suspects, including a Chinese man, face prosecution for violating the Foreign Exchange Transaction Act. The scheme allegedly laundered funds through WeChat Pay, Alipay, and cryptocurrencies, disguised as legitimate expenses like cosmetic surgery and tuition fees.

The case is one of the largest crypto-linked illegal remittance schemes in South Korea, highlighting the challenges in tracking cross-border financial crimes with digital assets. In a related incident, a woman was jailed for laundering $180 million through cryptocurrencies. Regulators face difficulties tracking illicit crypto flows, as criminals become more sophisticated in operating under the radar.

South Korea tightens oversight of crypto-related financial activity, with plans to expand Anti-Money Laundering rules. The Financial Services Commission aims to apply Travel Rule requirements to transactions over $680, to prevent money laundering operations from breaking up transactions to avoid detection. Legislative amendments are expected in the first half of 2026.

Read more at Cointelegraph: Korea Customs $101M Remittance Ring WeChat, Crypto Wallets