Crypto Drug Ring Busted: 90 Arrested in South Korea

South Korean authorities have arrested 90 individuals, all Vietnamese nationals, in a major crackdown on a suspected drug trafficking ring that allegedly used cryptocurrencies as a payment tool. The operation, led by the Busan Metropolitan Police Agency, targeted a network of bars and clubs across the country.

The police investigation, which began in September 2024, focused on nine Vietnamese-run establishments in cities such as Sejong, Daegu, Cheonan, Asan, and Jincheon. The gang is accused of systematically smuggling drugs into South Korea, disguised as packets of coffee and vitamins, and distributing them in the targeted bars and clubs.

The gang members, who entered the country on various visas, are believed to have brought in 1.04 billion won ($721,000) worth of narcotics. They allegedly sold around 710 million won ($493,000) worth of these drugs to patrons of the bars and clubs.

Cryptocurrencies played a significant role in the gang's operations, serving as a payment tool for selling, smuggling, and sourcing drugs. The gang sold synthetic marijuana, ketamine, and MDMA (ecstasy) to club and bar-goers, and also organized private parties to boost interest in their illegal wares.

Following the arrests, the police force has vowed to take action against buyers who took drugs at the bars and clubs in question. They also plan to identify and arrest more intermediaries by conducting a digital analysis of the suspects' cell phones. The police have stated that they will conduct regular crackdowns on clubs and entertainment venues frequently visited by foreign nationals to prevent the spread of drugs and drug abuse.

South Korean police have been battling what they and prosecutors have called a worsening epidemic of crypto-powered drug crime. Recent Korean-language posts on social media networks X and Telegram from suspected drug dealers have offered "nationwide" drugs "delivery," with one post mentioning Bitcoin (BTC) as the preferred payment method for advance orders.

South Korean media outlets have reported that crypto-powered drug gangs have turned Korean-language Telegram channels into "drugs department stores," serving as an illicit "playground" for young South Koreans.