Crypto Platform Used as Crime Conduit
In a landmark ruling, a 41-year-old operator of an unlicensed digital asset platform was sentenced to five years in prison by the Daegu District Court. He facilitated money laundering for overseas voice phishing syndicates, converting illicit proceeds into digital tokens worth over $1 million through rapid, untraceable transactions.
Scams Meet Instant Crypto Conversion
The criminal network used encrypted Telegram channels to impersonate law enforcement and family members, tricking victims into transferring funds. Once received, the money was converted into a major stablecoin within an hour—bypassing traditional banking safeguards and freezing protocols.
- Fraudsters posed as officials or relatives to gain trust
- Illicit funds moved quickly into underground crypto pipelines
- High-frequency swaps obscured transaction trails
- Final step enabled cross-border cash-out
Judge Lee Young-jeol described the act as a 'severe breach of public order,' noting the defendant showed no effort to compensate victims. A 35-year-old accomplice received a 28-month sentence. Lawmaker Kim Seong-jun urged stricter oversight on stablecoin flows, warning they're increasingly exploited in illicit forex activities.