A South Korean police superintendent ("F") and a senior officer ("G") have been indicted and removed from their positions for allegedly accepting bribes from operators of an illegal private crypto exchange that laundered $186 million (249.6 billion won) from voice phishing scams.
Details of the Allegations:
- Superintendent "F" allegedly received $59,000 (79 million won) between July 2022 and February 2024.
- Officer "G" reportedly accepted $7,500 (10 million won) in cash and luxury goods during the same period.
- In exchange for the payments, the officers allegedly provided investigative information, introduced lawyers, requested the unfreezing of criminal accounts, and facilitated connections with other law enforcement personnel.
The Illegal Operation:
- The illegal crypto-for-cash exchange, run by an unnamed operator and CEO "B," was disguised as gift-certificate stores in high-traffic areas, like Yeoksam-dong, between January and October 2024.
- The group converted criminal proceeds from voice phishing scams into Tether's stablecoin (USDT), trying to maintain a facade of legitimacy.
- The network was exposed during a review of a voice-phishing case that contradicted an earlier non-indictment decision for CEO B.
- Authorities froze approximately $1.1 million (1.5 billion won) in illicit assets, including $600,000 in USDT.
- The group's total criminal proceeds are estimated at $8.4 million (11.2 billion won), with the majority allegedly spent or concealed.
Global Context:
This indictment follows other recent crypto-related corruption scandals involving law enforcement globally:
- India (July): Government staffers were found to have allegedly extorted officials and attempted to launder the bribe money through crypto, with one staffer allegedly routing over $470,000 through 13 accounts.
- Iran (March): Top interrogators from the IRGC were accused of embezzling over $21 million in crypto while investigating the defunct exchange Cryptoland.
November 2025, Cryptoniteuae