{
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    "date": "2025-11-28T14:01:40",
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        "rendered": "South Korean Police Officers Indicted in $186 Million Crypto-Laundering Case"
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        "rendered": "<div>\n<div>\n<h4 color=\"#333\">In brief<\/h4>\n<ul>\n<li>Two South Korean police officers were indicted for allegedly taking bribes from operators of illegal crypto exchanges tied to a $186 million voice-phishing laundering operation.<\/li>\n<li>Prosecutors say the officers provided investigative information, helped unfreeze accounts, and facilitated legal and law-enforcement contacts in exchange for payments.<\/li>\n<li>Authorities froze about $1.1 million in assets as part of a broader probe that uncovered a coordinated network converting criminal proceeds into USDT through cash-for-crypto shops.<\/li>\n<\/ul>\n<\/div>\n<p><span>A South Korean police superintendent and senior officer have been indicted for allegedly accepting bribes from crypto operators who ran illegal exchanges that laundered $186 million (249.6 billion won) in proceeds from voice phishing.<\/span><\/p>\n<p><span>Seoul Police Station Chief \u201cF\u201d allegedly received $59,000 (79 million won) between July 2022 and February 2024 from operators of an illegal private crypto exchange.\u00a0<\/span><\/p>\n<p><span>Officer \u201cG,\u201d meanwhile, reportedly accepted $7,500 (10 million won) in cash and luxury goods during the same period, according to a rough translation of a <\/span><a href=\"https:\/\/www.spo.go.kr\/site\/suwon\/ex\/board\/View.do?cbIdx=1403&#038;bcIdx=1092130\" target=\"_blank\" rel=\"nofollow external noopener\"><span>press release<\/span><\/a><span> from the Suwon District Prosecutors&#8217; Office Criminal Division.<\/span><\/p>\n<p><span>Both officers have been removed from their positions following their arrest.<\/span><\/p>\n<p><span>The duo allegedly provided investigative information, introduced lawyers, requested the unfreezing of accounts for criminal activities, and facilitated connections with other law enforcement personnel in exchange for the payments, prosecutors said.<\/span><\/p>\n<p><span>Sharing details on wallets can push suspects \u201ctoward mixers and privacy apps that obfuscate evidence and undermine AML efforts,\u201d Kadan Stadelmann, CTO at Komodo Platform, told <\/span><i><span>Decrypt<\/span><\/i><span>, noting it\u2019s crucial for communities to ensure their local police follow the rule of law.<\/span><\/p>\n<p><span>The \u201clarger threat\u201d for governments is a public committed to \u201cprivacy and self-custody wallets,\u201d which is \u201cwhy governments have gone after\u201d mixer developers, he added.<\/span><\/p>\n<p><span>Prosecutors allege that an unnamed operator, working with CEO \u201cB\u201d, recruited members to form a coordinated team to run illegal crypto-for-cash exchanges disguised as gift-certificate stores in high-traffic areas, such as Yeoksam-dong, between January and October 2024.<\/span><span><br \/><\/span><span><br \/><\/span><span>The group converted criminal proceeds, primarily from voice phishing scams, into Tether\u2019s stablecoin <\/span><a href=\"https:\/\/decrypt.co\/resources\/what-is-tether-usdt-stablecoin\" target=\"_blank\"><span>USDT<\/span><\/a><span> while maintaining a facade of legitimacy through signs warning customers to &#8220;Beware of Voice Phishing,&#8221; according to prosecutors.<\/span><\/p>\n<p><span>The network was allegedly exposed during prosecutors\u2019 review of a voice-phishing case sent over by police, revealing laundering activity that contradicted an earlier non-indictment decision for CEO B and triggering a deeper supplementary investigation.<\/span><\/p>\n<p><span>Authorities froze about $1.1 million (1.5 billion won) in illicit assets, including $600,000 (800 million won) in USDT, and prosecutors estimate the group\u2019s total criminal proceeds at roughly $8.4 million (11.2 billion won), with the rest allegedly spent or concealed.<\/span><\/p>\n<p><i><span>Decrypt<\/span><\/i><span> has reached out to the Suwon District Prosecutors&#8217; Office and Tether for further comment.<\/span><\/p>\n<h2 color=\"#333\"><b>Global crypto corruption scandals<\/b><\/h2>\n<p><span>The indictment follows similar crypto-related corruption cases worldwide involving law enforcement officials.<\/span><\/p>\n<p><span>In July, the Indian state of Karnataka\u2019s anti-corruption watchdog, the state Lokayukta, found that staffers Srinath Joshi and police constable Ningappa allegedly <\/span><a href=\"https:\/\/www.indiatoday.in\/india\/karnataka\/story\/ktaka-lokayukta-reveals-own-officials-involved-in-bribery-used-cryptocurrency-for-money-laundering-2750582-2025-07-04\" target=\"_blank\" rel=\"nofollow external noopener\"><span>extorted government officials<\/span><\/a><span> and tried to launder the bribe money through crypto, with Joshi reportedly opening 24 accounts and routing over $470,000 (4 crore rupees) through at least 13 of them.<\/span><\/p>\n<p><span>In March, top interrogators from Iran&#8217;s Islamic Revolutionary Guard Corps (IRGC) were accused of allegedly orchestrating one of the country&#8217;s most audacious crypto thefts, <\/span><a href=\"https:\/\/decrypt.co\/312351\/iran-officials-21-million-crypto-investigating-corruption\" target=\"_blank\"><span>embezzling over $21 million in crypto<\/span><\/a><span> while investigating defunct exchange Cryptoland and its CEO, Sina Estavi.<\/span><\/p>\n<div>\n<h3>Daily Debrief Newsletter<\/h3>\n<p>Start every day with the top news stories right now, plus original features, a podcast, videos and more.<\/p>\n<\/div>\n<\/div>",
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