South Korean Court Jails Two Vietnamese Nationals for USDT Money Laundering

The Eastern Seoul District Court has sentenced two 23-year-old Vietnamese nationals to two years in prison for violating the country’s Electronic Financial Transaction Act and the Act on Recovery of Crime Proceeds.

The two were recruited via a Telegram chat group by a voice phishing ring. Their role was to receive fraudulently obtained Korean won, convert it into Tether (USDT), and send it abroad to Vietnam.

Modus Operandi

  • The voice phishing gang impersonated officials like prosecutors, tax agents, or bank employees to deceive victims into transferring money.
  • The accused received a commission of 50,000 to 100,000 won per 10 million won worth of USDT sent.
  • This scheme used cryptocurrency to bypass national borders and conceal the laundering process.

Court’s Remarks

Judge Lee Jeong-hyeong stated that while the two were not the masterminds of the criminal operation, they played a critical intermediary role and had made no effort to compensate the victims.

Implications

This case highlights the growing misuse of stablecoins like USDT in cross-border criminal activities. It also reflects South Korea’s increased crackdown on the use of crypto for fraud and money laundering.

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