Authorities in Thailand have arrested a 33-year-old South Korean man in connection with a $50 million laundering operation involving the conversion of cryptocurrency to gold.
The man, identified as Han, was apprehended at Bangkok’s Suvarnabhumi Airport on a warrant issued in February, according to Thailand’s Technology Crime Suppression Division (TCSD).
Han is facing charges of fraud, money laundering, computer crimes, and participation in a criminal syndicate.
Han’s arrest is a development in an investigation that had already established multiple international networks linked to large financial scams.
Scam Network Promised Fake Investment Returns
The case stemmed from a call center scam that started earlier this year and involved wooing victims into investing and promising them incredible high returns at a range of 30% and 50%.
In the beginning, some victims were paid small portions, so they built trust and invested in even bigger deposits.
However, they quickly cut off the ability to withdraw once the investments increased. They gave fabricated reasons and claimed they failed to meet their requirements.
Eventually, dozens of victims filed complaints with the TCSD, which led to a lengthy investigation.
The investigation has led to the arrest of ten suspects, five alleged money launderers, and five who were alleged account mule holders.
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Crypto Accounts Used to Purchase Gold Bars
Authorities confirmed that Han allegedly ran many cryptocurrency accounts used to facilitate the fraud.
His accounts reportedly conducted approximately 47.3 million USDT in the 3 months before his arrest in March 2024.
Investigators purportedly believe that the funds were converted into gold, with each laundering cycle involving over 10 kgs of gold valued just under $1,000,000.
The gold bars would then get shipped back to the syndicate, allowing the fraud to conceal the source of the stolen assets and any legacy of steroids.
During Han’s arrest, much of the relevant data needed to connect the dots for investigators was found on his mobile phone and seized.
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Broader Crackdown on Crypto Laundering Across Asia
The arrest comes in the back of a broader crackdown on crypto fraud throughout Asia.
On the 22nd of August, UnoCrypto reported that Taiwan’s prosecutors indicted 14 people linked to Bixiang Technology, the largest virtual currency exchange in the island, for laundering roughly NT$2.3 billion (around $71 million) for a fraudulent scheme.
Essentially, the ring used false franchise stores and deposit machines to turn cash into crypto and defraud more than 1,000 individuals.
Prosecutors have laid out the groundwork for heavy sentences and asset seizures to set a precedent, highlighting how law enforcement in the region is ramping up its fight against crypto financial crime.
The Thai and Taiwanese cases illustrate how cross-border cooperation is becoming vital in tackling the ever-growing sophistication of fraud involving digital assets.