South Korean Customs Shut Down Suspected International Gambling Ring
South Korean law enforcers have taken action against a suspected international gambling ring that used USDT. Seven individuals were arrested in raids, with one person being remanded in custody. The group’s cases will now be handled by the Seoul Central District Prosecutors’ Office. The charges brought against the seven individuals include violating the Foreign Exchange Transactions Act. However, two members of the gambling ring have reportedly fled abroad to evade arrest. The customs service held a press conference where they displayed seized items, including banknotes in KRW and USD.
Operation of the South Korean-Filipino ‘USDT-Gambling Ring’
The gambling ring allegedly used social media channels to find customers for illegal gambling sites. They converted the received money into USDT, accumulating over $12 million worth of the stablecoin. Winnings were paid out to gamblers in USDT tokens. The group utilized an illegal gambling establishment in the Philippines to convert fiat currency into USDT. Their operations were carried out from secret offices in Seoul, South Korea, and Bonifacio Global City in the Philippines.
Claims of Shell Companies and Fake Documents
The leader of the group was accused of setting up multiple shell companies for arbitrage crypto trading. Customs officials discovered materials related to illegal remittances and confiscated nearly $182,000 in cash. They also found evidence suggesting that fake documents were created to pretend payment for imports.
Crackdowns on Crypto and Gambling in South Korea
South Korean authorities have strict gambling laws, with only one licensed brick-and-mortar casino admitting domestic customers. Efforts to combat online gambling sites and illegal casinos have been ongoing for over a decade. Recently, major crypto exchanges in South Korea announced their collaboration with financial regulators to target undeclared crypto operators. In a separate incident, police in South Jeolla Province arrested individuals suspected of deceiving 170 crypto investors by posing as crypto-issuing robot developers.
Hot Take: South Korean Customs Service Takes Down International Gambling Ring
South Korean law enforcement continues its crackdown on crypto-related crime, with the customs service successfully shutting down an international gambling ring that operated using USDT. The arrests made and the seizure of significant amounts of money demonstrate the country’s determination to combat illicit activities in the crypto space. This action is part of broader efforts to enforce strict regulations on gambling and cryptocurrencies in South Korea. With ongoing crackdowns and collaborations between authorities and financial regulators, it is clear that illicit activities involving crypto will face consequences. The actions taken by South Korean law enforcers serve as a warning to those involved in similar illegal operations.
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