South Korea charges 23 in $11M USDT money-laundering probe

South Korean police charged 23 people on allegations they laundered roughly $11 million in USDT following a recent multi-month inquiry into illicit cryptocurrency activity.

Investigators opened the probe after tracing transactions that showed large sums converted into USDT and moved through multiple virtual asset accounts to obscure the source and destination of the funds. Authorities allege the operation moved value across wallets and exchanges before converting proceeds into fiat currency.

Prosecutors used blockchain analytics and worked with virtual asset service providers to map token movements and link account activity to the scheme. Authorities also moved to freeze related assets and accounts while collecting evidence to support criminal charges.

Police have not publicly identified the suspects or provided detailed timelines for each defendant’s alleged role. The case targets individuals accused of arranging and facilitating the conversions and transfers at the core of the alleged laundering network. Court filings and further police statements are expected as prosecutors consider formal indictments.

USDT, commonly known as Tether, is a dollar-pegged stablecoin widely used in crypto trading. Investigators often focus on stablecoin conversions and cross-platform transfers when probing suspected laundering because those steps can be used to move funds quickly across borders.

South Korea has tightened oversight of cryptocurrency trading and service providers in recent years, requiring virtual asset businesses to register with authorities and implement anti-money-laundering controls such as identity verification and transaction monitoring. The investigation is ongoing; any charges and penalties will depend on evidence presented in court.