Thai police arrest South Korean man in $50M crypto-to-gold laundering scheme

Thai authorities have arrested a 33-year-old South Korean man accused of facilitating a large-scale cryptocurrency-to-gold money laundering scheme that involved more than $50 million in illicit funds. The suspect, identified as Han, was detained at Bangkok’s Suvarnabhumi Airport on a warrant issued in February following a multi-month investigation led by the Technology Crime Suppression Division (TCSD) [1]. The operation allegedly involved a call-center-based scam that targeted victims with false investment opportunities, promising returns of 30%–50% to lure them into transferring funds to the criminal network [2].

According to investigators, the scam initially provided small payouts to create a false sense of legitimacy before blocking further withdrawals under fabricated compliance requirements. As the deposits increased, the money was funneled into Han’s cryptocurrency accounts, where it was then converted into gold bars and shipped back to the syndicate. The process reportedly involved the use of USDT (Tether), a stablecoin, to obscure the digital trail of the funds. Over the course of three months in 2024, Han’s accounts processed around 47.3 million USDt, with each laundering cycle involving over 10 kilograms of gold valued at about $1 million [3].

Han, who previously studied in China before working for a South Korean firm that specialized in converting crypto into gold, allegedly played a key role in managing the network’s digital assets. His mobile device, containing multiple cryptocurrency accounts linked to the laundering operation, was seized during the arrest. While he has denied some of the charges, Han remains in custody as police investigate the broader network, which has already led to the arrest of ten other suspects, including five alleged launderers and five mule account holders [2].

The scheme highlights a growing trend in the misuse of cryptocurrencies for laundering, particularly the conversion of digital assets into physical commodities like gold. Gold, due to its portability and global recognition, is increasingly used by illicit actors to evade digital tracking and move large sums across borders. The Thai police operation reflects the increasing coordination between law enforcement and cryptocurrency regulators to detect and dismantle such schemes.

The arrest underscores the global challenge posed by crypto-based money laundering and the need for stronger regulatory and investigative tools. It also signals the potential for effective cross-border cooperation in tracking down individuals and networks that exploit the anonymity of digital currencies for criminal activities. Authorities have not yet revealed whether other suspects are under investigation or the full scope of the operation [3].

Source:

[1] Thai authorities have arrested a South Korean man accused of helping a call center gang launder cryptocurrencies into gold worth more than $50 million. (https://cointelegraph.com/news/thai-police-arrest-korean-man-50m-crypto-gold-laundering)

[2] Thai police arrested a 33-year-old South Korean man for laundering $50M in USDT into gold via a call-center scam. (https://www.ainvest.com/news/thai-police-uncover-50m-usdt-gold-laundering-scheme-call-center-scam-2508/)

[3] Thai police have arrested a South Korean man accused of helping a call center gang launder over $50 million in crypto into gold. (https://mx.advfn.com/bolsa-de-valores/COIN/BTCUSD/crypto-news/96693080/korean-man-arrested-over-50m-crypto-to-gold-laund)