Thailand arrests South Korean in $50M crypto-to-gold laundering scheme

Thailand’s police have arrested a 33-year-old South Korean national suspected of leading a $50 million money laundering operation that converted USDT into physical gold through a fraudulent investment scheme. The suspect, identified as Han, was detained at Bangkok’s Suvarnabhumi Airport in February 2024 following a months-long investigation. Between January and March 2024, Han’s crypto wallets reportedly processed 47.3 million USDT—equivalent to around $47.3 million—which was used to purchase gold in at least 30 separate transactions. Each transaction involved no less than 10 kilograms of gold, valued at approximately $1 million.

According to investigators at Thailand’s Technology Crime Suppression Division, Han acted as a financial intermediary in a cross-border operation, working closely with overseas gold vendors to facilitate the conversion and shipment of the metal. His mobile phone, recovered during the arrest, contained access to multiple cryptocurrency accounts and wallet logs indicative of large-scale laundering activities. Han reportedly studied in China for six years before joining a South Korean firm specializing in converting illicit digital assets into physical commodities, a detail investigators believe is key to understanding the operation’s structure and logistics.

The scam reportedly began with victims being lured by promises of 30% to 50% returns on crypto-based “projects.” Initial small payouts were used to build trust before victims were cut off under false regulatory or compliance claims. This call-center-driven strategy is believed to have been part of a broader network active as early as 2024, with Han playing a central role in the financial processing and laundering of illicit funds. Authorities suspect the gold was either stored locally or transported for further distribution, with investigations ongoing to trace the full scope of the operation.

Ten individuals have been arrested in total, including five suspected launderers and five mule account holders. Han is currently in custody, with police continuing to examine digital evidence recovered from his devices. The Technology Crime Suppression Division has confirmed that Han faces charges of fraud, impersonation, and money laundering. Pol Maj Gen Athip Phongsiwapai, the division’s commander, highlighted the suspect’s alleged role as a key node in a complex network of transnational financial crime.

The case underscores the evolving tactics of criminal groups, who increasingly exploit the anonymity and liquidity of cryptocurrency to move large sums across jurisdictions. By converting digital assets into gold, a highly liquid and easily transportable physical commodity, the suspects managed to obscure the origins of the funds and evade detection. The use of USDT, a stablecoin pegged to the U.S. dollar, allowed for rapid and large-scale transactions between countries, further complicating enforcement efforts.

The arrest aligns with a broader regional crackdown on crypto-related crime. In recent months, authorities in China and the United States have also taken action against major laundering schemes involving digital assets. These cases highlight the growing importance of international cooperation in tracking and dismantling transnational criminal networks that leverage crypto for illicit purposes. Thai law enforcement is now working closely with financial regulators and immigration authorities to fully trace the movement and storage of the gold, with further arrests expected as the investigation unfolds.

The incident adds to global concerns about the misuse of cryptocurrencies and the need for stronger regulatory and monitoring frameworks in the digital asset space. As jurisdictions seek to close gaps in compliance and transparency, the case illustrates the critical role of cross-border coordination in combating financial crime in the digital age.

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)