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Thai authorities have cracked a high-stakes crypto laundering scheme, arresting a South Korean national accused of converting over $50 million in digital assets into gold for an international call center fraud network.
The operation, described by police as one of the region’s most sophisticated to date, highlights the growing complexity of cross-border crypto crimes.
The crypto laundering scheme allegedly involved laundering stablecoins such as Tether (USDT) into gold bars.
Investigators from Thailand’s Technology Crime Suppression Division (TCSD) revealed that Han managed crypto accounts funneling victim funds into bulk gold purchases from overseas suppliers, before the bars were shipped back to the criminal network.
“Each transaction was worth millions, with gold shipments exceeding 10 kilograms at a time,” said Pol Lt Gen Worawat Watnakornbancha, commissioner of the TCSD, in a press briefing.
“This was a deliberate attempt to obscure the money trail and exploit weaknesses in cross-border trade monitoring.”
Between January and March 2024 alone, Han’s accounts allegedly processed $47.3 million in USDT, which investigators say was funneled directly into gold.
The crypto laundering scheme was tied to a call center fraud that began earlier in 2024. Victims were tricked into investing in fake trading platforms promising 30% to 50% returns.
Initial withdrawals were allowed to build trust, but as deposits grew, withdrawals were suddenly blocked under false pretenses.
“This type of investment fraud is becoming increasingly common across Asia, where scammers exploit both crypto and traditional assets like gold,” said David Carlisle, VP of Policy at blockchain analytics firm Elliptic, in an external commentary.
“The combination makes tracking and recovery far more difficult for law enforcement.”
Dozens of victims filed complaints with Thai authorities, prompting a full-scale investigation.
To date, ten suspects have been arrested, including five alleged money launderers and five mule account holders.
Police confirmed they tracked Han’s entry into Thailand and coordinated with the Immigration Bureau to arrest him at the airport checkpoint.
His mobile phone, containing multiple crypto wallet addresses linked to the laundering pipeline, was seized as critical evidence.
Investigators said Han studied in China before joining a South Korean firm that specialized in crypto-to-gold conversions. He allegedly leveraged these skills to build laundering infrastructure for the gang.
Although Han has denied parts of the charges, he remains in custody as Thai prosecutors prepare to pursue charges of fraud, computer crime, money laundering, and involvement in a criminal syndicate.
The arrest highlights Thailand’s growing efforts to combat the rise of the crypto laundering scheme model, which blends digital assets with traditional commodities.
“Criminals are constantly adapting, moving from banking channels into commodities like gold and even real estate,” said Chainalysis, a leading blockchain forensics firm, in its 2024 Crime Report.
“Law enforcement agencies must stay ahead with tools to track complex money flows across borders.”
Thai authorities have stepped up surveillance of both cryptocurrency exchanges and gold trading companies amid fears that similar schemes could destabilize financial security.
Experts warn that this case underscores a larger trend: the crypto laundering scheme has become a global issue as criminal groups look for new ways to bypass anti-money laundering (AML) controls.
“Gold remains a timeless vehicle for illicit finance,” said Kim Grauer, Director of Research at Chainalysis, in comments reported by Reuters.
“When combined with cryptocurrencies, it creates an almost untraceable laundering loop unless law enforcement intervenes quickly.”
The Financial Action Task Force (FATF) has repeatedly urged countries to tighten regulations around both crypto service providers and precious metals dealers, highlighting their role in international laundering schemes.
The arrest of Han in Thailand shines a spotlight on the growing sophistication of the crypto laundering scheme.
With over $50 million allegedly converted into gold, this case illustrates the challenges global regulators face as digital assets intertwine with traditional commodities.
As Thai authorities continue their crackdown, experts say it could set an important precedent for how countries collaborate to tackle transnational financial crime.
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