South Korean Police Bust $95,000 Illegal Gambling Operation Disguised as Crypto Mining Farm

South Korean police recently uncovered an illegal gambling operation disguised as a cryptocurrency mining farm in the city of Gwangju. The bust, which took place on Wednesday, revealed that the operation had generated over $95,000 (₩140 million) through unlicensed gaming machines. The makeshift gaming room was set up in an office in Gwangsan-gu, with 50 modified gaming machines and two kiosks installed under the pretense of a virtual currency exchange and mining operation.

The suspect, identified only as “Mr. A,” is being investigated for violating the Game Industry Promotion Act. According to reports, “Mr. A” modified a free mobile game, charging players $38 (₩50,000) per hour to play and rewarding them with cash based on their scores. Following the bust, authorities confiscated the gaming equipment and are expanding their investigation to identify possible accomplices.

Chief Jeong Gyeong-ho, who led the raid, emphasized the importance of preventing illegal gaming centers from reopening or spreading. “We will actively block illegal gaming centers from reopening or spreading even after being cracked down on,” he stated. Another police official added, “We plan to continuously and strongly crack down on illegal gaming rooms that threaten the people’s economy.”

This incident is part of a broader trend in South Korea, where gambling operations have increasingly used digital fronts, such as crypto mining and fake investment platforms, to evade detection. These setups often appear legitimate on the surface but exploit regulatory blind spots between gaming, crypto, and financial services. In November 2024, South Korean police arrested 12 operators and 191 gamblers connected to an illicit online betting network that handled more than $7.77 million (₩108.4 billion) in wagers. The group reportedly used encrypted chat apps and exclusive invite-only recruitment to avoid law enforcement scrutiny.

Just last week, authorities in South Gyeongsang arrested 18 individuals for running illegal online casinos from the Philippines, laundering over $169.5 million (₩250 billion). The operation lured gamblers through mass texts and internet cafés, highlighting the global and tactical nature of these shadow networks. These incidents underscore the need for continued vigilance and enforcement to combat illegal gambling activities that exploit digital technologies and regulatory loopholes.