Thai Police Uncover $50M USDT-to-Gold Laundering Scheme via Call-Center Scam

Thai police have arrested a 33-year-old South Korean national over allegations of laundering over $50 million in USDT (Tether) into physical gold through a call-center-based investment scam [1]. The suspect was detained at Suvarnabhumi Airport in Bangkok in February 2024, after investigators had issued a warrant earlier in the month. Seized devices included his phone, which reportedly contained records of multiple crypto accounts used in the alleged laundering operation.

The scheme allegedly began in early 2024 and involved fraudulent investment pitches promising returns of 30% to 50%. Victims were initially given payouts to establish trust, but subsequent withdrawal attempts were blocked under fabricated compliance or regulatory excuses [1]. The suspect is accused of managing a network that converted USDT into gold via overseas suppliers, with the gold later shipped back to Thailand for distribution or storage. Authorities estimate that between January and March 2024, the suspect’s accounts processed about 47.3 million USDT, with each laundering cycle reportedly involving more than 10 kg of gold—equivalent to roughly $1 million in value [1].

Ten individuals have been arrested in total, including five allegedly involved in laundering and five acting as “mule account” holders. The suspect, who had previously studied in China, was reportedly working for a South Korean firm linked to the gold conversion process [1]. He has denied some of the charges but remains in custody as the investigation into the broader network continues.

The case highlights the increasing complexity of cross-border money laundering schemes that use cryptocurrency to move and conceal illicit funds. By converting digital assets into tangible commodities like gold, the network exploited regulatory gaps and the global nature of crypto transactions [1]. USDT, a stablecoin pegged to the U.S. dollar, was used as the primary medium for its high liquidity and perceived anonymity, facilitating rapid transfers between jurisdictions.

The operation is part of a broader regional crackdown on cryptocurrency-related crime. In parallel, Taiwanese prosecutors are investigating a similar case involving 14 individuals and over 1,500 victims, with more than $70 million allegedly laundered [1]. These developments underscore the growing collaboration among law enforcement agencies in tracking and dismantling transnational financial crime rings that exploit digital currencies.

Thai authorities are now coordinating with immigration and financial regulators to trace the full scope of the network, including the origin and destination of the gold shipments. The case adds to global concerns over the misuse of crypto for illicit activities, reinforcing the need for enhanced transaction monitoring and regulatory oversight in the digital asset space [1].

Source: [1] Thai police arrest Korean man in crypto money laundering case. (https://cointelegraph.com/news/thai-police-arrest-korean-man-50m-crypto-gold-laundering)