, reflecting rising crypto-financial crime trends.){kind=link}
A South Korean court has sentenced two Vietnamese nationals to two years in prison each for their involvement in a crypto-based money laundering operation powered by Tether (USDT).
The case was overseen by Judge Lee Jeong-hyeong of the Seoul Eastern District Court.
The case involved the conversion of funds obtained through voice phishing scams into the stablecoin USDT before transferring the assets overseas.
The duo, both 23 years old, were found guilty under South Korea’s Special Act on the Prevention of Telecommunications and Financial Fraud and Refund of Damages.
The judgment was handed down on June 22 and marks a significant milestone in the country’s crackdown on crypto-enabled financial crimes.
Recruitment Through Telegram: Crypto as a Laundering Tool
The two defendants, Duong, a college student, and Pham, an unemployed individual, were recruited through a Telegram open chatroom.
They were promised commissions ranging from 50,000 to 100,000 Korean won (approximately $36 to $73) for every 10 million won ($7,288) worth of Korean currency they converted into Tether and sent abroad.
Once recruited, Duong and Pham received proceeds from voice phishing scams in local currency and were instructed to buy USDT with the funds. They then transferred the stablecoins to a crypto wallet controlled by a member of the voice phishing ring based in Vietnam.Â
The method enabled the ring to bypass traditional financial systems and smuggle large sums of illicit funds across borders with relative ease.
Also Read: Haru Invest CEO Lee Hyung‑soo Cleared Of More Than $1B Crypto Fraud By South Korean Court
Phishing Victims Deceived by Fake Government Agents
The phishing scheme behind the laundering operation was highly manipulative and sophisticated.
Members of the criminal organization posed as credit card delivery agents, insurance company workers, National Tax Service employees, and even public prosecutors.
In one instance, the group managed to scam 140 million won (approximately $102,000) from a single victim by claiming they were checking the safety of the victim’s bank account, which they alleged had been compromised.
The operation employed accomplices, including another Vietnamese national, an Uzbek accomplice, and a local money changer.
Their aim was to carry out multiple layers of laundering before the money reaches Vietnam.
These tactics demonstrate the extent to which organized crime syndicates have adopted crypto as a tool for fraud and evasion.
Judge Highlights Severity of Crime, But Notes Lack of Prior Offenses
During sentencing, Judge Lee acknowledged the seriousness of the crime but also noted that neither Duong nor Pham had any previous criminal record in South Korea.
The consideration prevented the court from handing down a harsher sentence.
However, the judge emphasized that the act of laundering phishing proceeds through cryptocurrency, especially using Tether, which is harder to trace than traditional currency, is a growing threat that requires strict legal action.
The case illustrates how young and seemingly inexperienced individuals are being lured into international fraud networks, often through digital platforms and promises of easy money.
Broader Trend of Crypto-Related Sentencing Around the Globe
This sentencing comes amid a global surge in court actions against crypto-related crimes.
In the UK, seven gang members were recently sentenced for extorting $124,000 in cryptocurrency using violent methods such as kidnapping and torture.
Meanwhile, in China, another court sentenced seven organizers of a crypto pyramid scheme to up to three years in prison after causing nearly $1 million in losses.
These global cases highlight a concerning trend: as digital assets become more integrated into global finance, they are increasingly being exploited by criminals.
Governments and regulatory bodies are now being forced to adapt rapidly, tightening legislation and improving surveillance mechanisms to protect consumers and uphold the law in the digital finance space.