South Korean police are once again reeling from a major corruption scandal. Two officers, a superintendent and a senior official, have been accused of accepting bribes from operators of illegal crypto exchanges involved in a money laundering operation estimated at €175 million. The case highlights how deeply crime and corruption can intersect within the crypto market.
Paid for Information and Assistance #
According to South Korean prosecutors, the police chief, identified as “F,” received approximately €50,000 in bribes between July 2022 and February 2024. The second officer, “G,” reportedly received around €6,000 and luxury gifts. Both officers were immediately removed from their positions following their arrest.
Prosecutors allege the officers leaked confidential investigation information and even assisted in unfreezing accounts linked to criminal activities. They are also said to have recommended lawyers to suspects and facilitated contacts within the police force, thereby making it easier for the money laundering network to operate.
The money laundering network operated creatively. Prosecutors say a group, led by an unnamed operator and a CEO “B,” ran a series of shops disguised as normal gift stores in busy city districts. In reality, customers could exchange cash for crypto, primarily the stablecoin USDT (Tether). The criminals used this method to convert proceeds from voice phishing into digital currency.
Ironically, some of these shops displayed warning signs saying “beware of Voice Phishing,” an attempt by the group to create a veneer of legitimacy.
Growing Concerns About Crypto-Related Corruption #
The case is gaining significant attention on X, where users are questioning the extent of corruption within the global crypto sector. Several analysts point out that transparency and oversight are becoming increasingly crucial, especially with the growing popularity of stablecoins, bitcoin, and over-the-counter (OTC) trading venues. Many users emphasize that trust in law enforcement is undermined when officers themselves collude with criminals.
Incidents Occurring More Frequently Worldwide #
This is not an isolated incident. Earlier this year, India reported that a police officer used crypto to launder bribe money, while in Iran, top officials of the Revolutionary Guard Corps were accused of embezzling over €20 million in digital assets during an ongoing investigation.