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South Korean prosecutors have indicted two senior police officials and five civilians for their alleged roles in a bribery scheme connected to a cryptocurrency money laundering operation that processed 249.6 billion won ($175 million) in proceeds from voice phishing scams.
The Suwon District Prosecutors’ Office Criminal Division 2 filed the indictments without detention Thursday, charging the suspects with violations of the Act on the Aggravated Punishment of Specific Crimes and the Act on the Regulation and Punishment of Criminal Proceeds Concealment, according to The Chosun Daily.
Prosecutors identified the main suspects as a former police station chief, referred to as “A,” and a former officer from the National Police Agency, identified as “B.” Both allegedly accepted money and luxury items from executives at a cryptocurrency business in exchange for sensitive investigative information and operational assistance.
Five additional suspects were indicted, including a crypto company operator identified as “C” and a chief executive “D,” who allegedly offered the bribes and laundered criminal proceeds through digital assets.
According to prosecutors, A received 79 million won ($55,000) between July 2022 and July 2024 after being introduced to C by an official at a domestic cryptocurrency exchange.
In exchange for the payments, A allegedly provided investigative information and assistance including checking whether officers familiar with him were involved in C’s case and connecting the suspects with lawyers to obstruct the probe.
Prosecutors say A was recruited with promises of early access to cryptocurrency tokens before exchange listings and guarantees that investments would be refunded if they failed.
Officer B allegedly received goods and favors worth 10 million won ($7,000) across approximately ten occasions between February 2024 and February 2025. After being introduced to C and D by A, B obtained designer items including wallets, shoes and coats, according to prosecutors.
In return, B allegedly confirmed the progress of criminal cases and requested the lifting of payment suspensions on accounts tied to the alleged crimes.
Authorities say the crypto executives operated a laundering scheme that converted 249.6 billion won in voice phishing proceeds into digital assets between January and October 2024.
Voice phishing, known as “boshing” in South Korea, involves scammers impersonating government officials, prosecutors or financial institutions to trick victims into transferring money or revealing sensitive information.
Prosecutors estimate the operation generated 11.2 billion won ($7.9 million) in illegal profits. Authorities have imposed seizure and asset-preservation measures on 1.5 billion won ($1.05 million) by tracking hidden properties.
The indictments come as South Korean financial authorities prepare a fresh round of penalties against domestic cryptocurrency exchanges for anti-money laundering failures.
The Korea Financial Intelligence Unit is processing cases in the order of its on-site inspections and is expected to issue institutional and individual sanctions, along with fines, against major trading platforms that breached AML obligations.
Regulators have said such failures threaten the integrity of South Korea’s rapidly growing cryptocurrency market.
