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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] SEOUL, October 27, 2025 — The volume of cryptocurrency transfers between South Korea’s major exchanges and a Cambodian trading platform linked to criminal organizations surged nearly 1,400 times year-on-year in 2024, sparking concerns that local platforms may be exploited for money laundering and illegal remittances, according to data from the Financial Supervisory Service (FSS).
The findings, disclosed by Rep. Lee Yang-soo of the National Assembly’s Political Affairs Committee, show that crypto transactions between Korea’s five leading exchanges — Upbit, Bithumb, Coinone, Korbit, and Gopax — and Cambodia-based Hui One Guarantee reached ₩12.8 billion (US$9.3 million) last year, up from just ₩9.22 million (US$6,700) in 2023.
The trend continued into 2025. Between January and October, transfers totaled ₩3.15 billion (US$2.3 million), led by Bithumb (₩2.18 billion), followed by Upbit (₩523 million) and Korbit (₩443 million).
Hui One Guarantee is a subsidiary of the Hui One Group, which has been sanctioned by U.S. and U.K. authorities for allegedly laundering criminal proceeds on behalf of Cambodian organized crime networks.
Most transactions involved the U.S. dollar–pegged stablecoin Tether (USDT), which has become a favored instrument for illicit cross-border fund transfers due to its price stability and high liquidity.
Meanwhile, links between Cambodian criminal networks and Korean bank subsidiaries in the country are also under scrutiny.
According to Rep. Kang Min-guk of the ruling People Power Party, four Korean banks — Jeonbuk Bank, KB Kookmin Bank, Shinhan Bank, and Woori Bank — collectively paid ₩1.45 billion in deposit interest to the Prince Group, which has been named as part of the same network behind the Cambodian financial crimes.
The group’s total deposits at these banks amount to ₩91.2 billion, with Jeonbuk Bank accounting for ₩7.09 billion in interest payments, followed by KB Kookmin (₩6.73 billion), Shinhan (₩610 million), and Woori (₩110 million).
Lawmakers urged financial regulators and law enforcement authorities to strengthen oversight of virtual asset transfers and foreign bank subsidiaries in Southeast Asia to prevent the misuse of digital assets for criminal financing.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
