South Korean prosecutors have indicted two police officers for allegedly taking bribes to help a criminal organization launder $186 million through illegal cryptocurrency exchange operations. Both officers have been suspended as the investigation expands, marking one of the most serious corruption cases tied to Korea’s growing crypto-crime landscape.
Officers Accused of Taking Bribes to Protect Criminals
According to prosecutors, a police superintendent identified as “F” is accused of receiving roughly $59,000 in bribe payments. A second officer, “G”, reportedly accepted around $7,500 in cash and luxury goods. These payments were allegedly made between July 2022 and February 2024 by operators of underground crypto exchanges.
In return, the officers are said to have leaked confidential investigation information, assisted in unfreezing accounts, and even introduced the criminals to other law enforcement contacts who could be influenced.
How the Laundering Scheme Worked
The criminal network ran a sophisticated operation that converted profits from voice phishing scams into USDT (Tether). They allegedly used illegal “crypto exchange points” disguised as gift card shops in busy commercial districts, including Seoul’s Gangnam area.
Authorities have so far frozen around $1.1 million in illicit assets, with prosecutors signaling that more seizures could follow as the case develops.
Latest in a Wave of High-Profile Crypto Crimes
The indictments come amid a sharp rise in cryptocurrency-related financial crime in South Korea. Recent cases include:
- A $228.4 million investment scam uncovered in November 2024
- An August 2025 arrest involving the laundering of criminal proceeds through gold purchases
The involvement of law enforcement officers in the latest scandal has intensified public scrutiny, with prosecutors emphasizing that internal corruption will be treated as a serious threat to national financial security.