The Seoul Metropolitan Police Agency’s Metropolitan Investigation Unit said it referred all 56 suspects to prosecutors on charges including violations of the Foreign Exchange Transactions Act and the Specific Financial Information Act. Nine of the 56 arrested suspects, led by a person identified only by the initial “A” who is believed to be based in Cambodia, received Tether from foreign exchanges between February 2024 and April 2025. They sold the tokens on South Korean platforms and routed the won proceeds into shell-company accounts that the organizer controlled.

South Korean police nabs 56 suspects in latest bust

Investigators traced approximately 14 billion won through the channel maintained by the syndicate. A second cluster of 14 suspects operated inside what police described as a romance-scam cell also run from Cambodia. That group converted roughly 2.8 billion won in fraud proceeds into Tether on domestic exchanges, switched it back to local currency, and wired the cash to the organization’s leadership. Police in Daegu had already arrested and charged these individuals with defrauding 79 South Korean victims of about 4.4 billion won.

The remaining 33 suspects ran a separate illegal currency-exchange service for foreign tourists and personal contacts where they charged flat fees to buy Tether on one exchange, transfer it to another, and pay out in foreign currency or won, handling an estimated 6.3 billion won. An analysis of roughly 11,300 accounts linked to the first two groups of suspects uncovered 265 confirmed cases of voice phishing and investment fraud totaling about 25.7 billion won ($17.1 million) in victim losses.

South Korean Police said the money gotten from phishing scams was recycled as “bait funds” after they were laundered. These funds are the initial payouts scammers use to simulate returns and lure victims into larger deposits. Investigators seized approximately 650 million won in criminal proceeds before indictment. So far, the organizer of the operation known as “A” remains at large, under an Interpol red notice. South Korea has put in a lot of work toward curbing the rise of crypto-enabled money laundering.

In January, customs authorities dismantled a separate $107 million laundering ring operated by three Chinese nationals who disguised the illicit transfers as payments for cosmetic surgery and university tuition over four years. In March, the Financial Supervisory Service, Korea Customs Service, and nine credit card companies signed an agreement to share overseas card-usage data in real time.

The operation specifically targeted phishing groups that operate across borders and move stolen funds through international card transactions and crypto exchanges. Separately, Bithumb, South Korea’s second-largest crypto exchange, severed ties with payment processor Heleket in May after blockchain intelligence firm TRM Labs linked the service to a Russia-connected platform fined nearly CAD 177 million by Canadian regulators for money-laundering and terrorism-financing violations.

The post South Korean police busts $11M USDT laundering ring first appeared on Coinfea.

This development comes as the Financial Supervisory Service (FSS) is pushing scrutiny of automated crypto trading. Regulators suggest that such trading now accounts for around 30% of domestic turnover. The global crypto market saw a massive sell-off over the last 24 hours. Bitcoin price dropped by more than 3%, while Ether dipped by almost 5%. The cumulative crypto market cap stands at $2.46 trillion.

South Korean agency to increase API surveillance

According to reports, the South Korean agency’s new framework is targeting emerging concerns among regulators and exchanges. One of them is the use of shared or compromised API credentials. It is being used to manipulate the markets and spoof orders. However, it can even coordinate trades across multiple accounts. The FSS also urged that some traders repeatedly submit and cancel large buy orders.

The South Korean FSS noted that the traders do this to create false demand signals. They later hit the sell button when the price goes up. However, the regulator did not disclose the number of accounts that are under investigation. The API keys trend has been hitting the market. It allows automated systems to connect directly to exchanges to access market data. Then it moves to execute orders, deposits, and hit withdrawals.

Under the new guidelines, DAXA member exchanges will implement harsh responses when suspicious API-sharing behavior is detected. After enhanced monitoring and user warnings, they will ask users to undergo mandatory re-authentication. Upbit, Bithumb, Coinone, Korbit, and Gopax are regulated by the South Korean agency. These exchanges will also deploy IP whitelisting systems that restrict API access to approved addresses.

Meanwhile, the group has not yet disclosed the precise detection methodology that’ll be used ahead. Back in 2022, 3Commas got linked to the large-scale exposure of access tokens. Reports suggest that around 100,000 API keys were exposed. However, these keys were associated with Binance and KuCoin accounts. Binance, Coinbase, OKX, and Kraken all support IP whitelisting and API permission management.

However, DAXA’s new rules appear to move toward mandatory enforcement in some scenarios. Security researchers have been warning that API credential abuse remains one of the least publicly discussed operational risks inside crypto trading infrastructure. Crypto infrastructure firm Sodot had noted that many API-related incidents are often categorized broadly as generic hacks. They need to be disclosed as credential compromises.

The post South Korean DAXA initiates crackdown on API key abuse first appeared on Coinfea.

According to their statement, the regulators believe the spike was a result of suspicious trading activity. South Korean financial regulators have opened investigations into the Upbit exchange after the ZKsync token surged in three hours before dropping back to its initial price. Regulators believe the spike was the result of price manipulation and said they are investigating the matter.

South Korean regulators kickstart investigation as ZKsync token surges by 970%

ZKsync was trading at $0.023 on Sunday morning, South Korean time, as the Upbit exchange prepared for scheduled system maintenance. At 11:30 AM, just before maintenance began, the price rose significantly to $0.24 over the next three hours, only to drop back to around $0.023 by 6:30 PM the same day, after the maintenance period ended.

A spokesperson for the Financial Security Service’s Virtual Asset Investigation Bureau said that the financial watchdog had noticed the peculiar price behavior ZKsync experienced that day and was looking into the matter, after which things “may quickly transition to a formal investigation after determining the severity of the case.”

Experts told a local South Korean newspaper that traders on the exchange set up a “buy wall” just before the maintenance period began, as part of a coordinated effort to artificially spike demand for the coin and push its price higher. According to data from the Upbit exchange, trading volumes in ZKsync surged by over 4,200% at the time of the incident.

In comparison, the token’s trading volume on Coinbase rose by a more modest 150% on the same day, while prices increased by just under 40%. The volume on Binance rose by 180%, while the crypto asset’s price moved by just 38-42%. According to legal experts, the action falls under the Virtual Asset User Protection Act, which came into effect in July 2024.

Jin Hyeon-su, managing partner at Decent Law Firm, said that “a large number of buy orders being concentrated in a short period of time, followed by a release of the volume afterwards” likely results in “price manipulation, collusive trading, and unfair trading.” The action is illegal under South Korean regulations, and perpetrators face over a year in prison and fines totaling up to five times the realized profits if found guilty. In addition, fines are also issued in applicable cases.

The post South Korean regulators investigate suspected manipulation of ZKsync first appeared on Coinfea.

The cryptocurrency exchange operator working under orders from a suspected North Korean hacker, along with his military recruit, who local media reports identified simply as Mr. B, have been sentenced to prison after they received substantial amounts of Bitcoin in exchange for military intelligence.

South Korean crypto operator bags jail term for spying

The Supreme Court’s 3rd Division, led by Chief Justice Lee Sook-yeon, recently upheld the lower court’s judgment against the 40-year-old defendant, identified only as Mr. A, who violated the National Security Act by spying. According to reports, in July 2021, Mr. A received instructions through Telegram from an individual operating under the alias “Boris,” suspected of being a North Korean hacker.

Mr. A approached an active-duty military officer, Mr. B, who was 30 years old at the time, with an offer to pay in cryptocurrency in exchange for classified military information, which the court believes was at Boris’s orders. Mr. B then used sophisticated spying equipment, including a hidden camera embedded in a watch. In addition, Mr B used a USB-shaped hacking device called “Poison Tap,” designed specifically for detecting and extracting military secrets to allow hackers remote access to a laptop.

The group attempted to penetrate South Korea’s defense systems. Boris was gunning for access to the Korean Joint Command and Control System (KJCCS). Mr. B successfully obtained and provided the login details for the system to both Boris and Mr. A. However, authorities confirmed that the actual hacking attempt failed. Mr. A received Bitcoin worth approximately 700 million won ($525,000) for his role in the espionage scheme.

On the other hand, Mr. B was paid Bitcoin valued at 48 million won ($36,000). Investigators also revealed that Mr. A attempted to recruit more conspirators by approaching another active-duty officer with offers of payment in exchange for military organizational charts. However, this second officer rejected the offer. Mr. A was found guilty and given a four-year prison sentence along with a four-year suspension period.

The court emphasized that Mr. A “was at least aware of the fact that it was trying to detect military secrets for a country or group that is hostile to the Republic of Korea.” The judges said that Mr. A only cared about his economic gain while “committing a crime that could have endangered the entire Republic of Korea,” which was an offense that deserved severe punishment. Mr. B was charged with violating the Military Confidentiality Protection Act and received a harsher 10-year prison sentence. He was also hit with a 50-million-won fine from the Supreme Court.

The post South Korean crypto exchange operator jailed for espionage first appeared on Coinfea.

However, South Korean investors are now dumping the asset, with about $657 million worth of the shares already dumped in August. This is the biggest monthly outflow recorded since early 2023. Once among Tesla’s most loyal global backers, they are now heading into riskier bets. This includes pulling shares of BitMine Immersion Technologies Inc., a U.S. firm that’s become a proxy for Ethereum. However, the firm stock saw net inflows of $253 million from South Korean retail traders.

South Korean retail traders move funds from Tesla

The shift in the traders’ mood shows a drop in belief in Tesla’s AI promises and growing appetite for higher-octane bets. Meanwhile, South Korean investors’ buying sprees had amplified Tesla’s rallies through the pandemic boom, but now they are looking at other assets. According to the report, a 33-year-old investor who first bought Tesla shares in 2019 sold out this year to chase newer plays. He mentioned that the company “has failed to lead with its own AI narrative.”

Tesla’s share price is up by more than 17% over the last 6 months, but it is still trailing by 12% on a year-to-date (YTD) basis. This suggests that the EV making giant saw a massive pump at the beginning of the year; however, it wasn’t able to keep up the momentum. Tesla’s share price dipped by 1.45% in the last trading session to trade at $333.86. The timing isn’t accidental, as Ethereum has outperformed Bitcoin lately.

According to records, Ethereum-linked ETFs are pulling in more money than Bitcoin for the first time. They recorded inflows of about $1.5 billion in a single week compared to Bitcoin’s $244 million. ETH price is running up by 28% over the last 30 days and 69% over the last 60 days. On the other hand, Bitcoin price dropped by 3.6% and 2% in the same period. The massive spike in ETH buying led to the biggest altcoin to hit above $4,900, marking its fresh all-time high (ATH).

ETH is trading at an average price of $4,471 at the press time. Its 24-hour trading volume surged by 43% to stand at $31 billion. BitMine (BMNR) is already doubling down on the frenzy. Since launching an Ethereum treasury strategy in June, it has bagged 1.79 million ETH (approx. worth $8 billion). This makes it the world’s largest Ethereum corporate holder and the second-largest crypto treasury overall, behind only MicroStrategy’s Bitcoin stash.

BitMine also recorded a spike in its share price, rising by more than 520% on a YTD basis, while it ran up by 707% over the last 6 months. BMNR price dipped by 16% in the last 5 trading days as the crypto market printed red indexes all around. The share closed trading at $43.62 in the last trading session.

The post South Korean traders ditch Tesla stocks for crypto first appeared on Coinfea.

The move aligns with President Lee Jae-myung’s campaign pledge to reduce virtual asset transaction fees and forms part of a broader plan to support youth asset development through accessible digital investments.

FSC Aims to Lower Trading Fees for Crypto Investors

The commission’s current objective is to assess whether existing trading fees are excessive for retail investors. It is considering a significant reduction from the prevailing 0.05 percent rate to 0.015 percent. This proposed change reflects growing political pressure to create fairer access to digital asset markets, particularly for young South Koreans seeking alternative investment opportunities. The probe will include a full evaluation of the cost burden users face and whether intervention is justified.

Regulators intend to conduct comprehensive surveys within key crypto platforms to establish how the fees are imposed, which rates, or how transparent the fees are disclosed. Such results will be utilised to analyse whether new guidelines or caps should be created to be evidence-based or whether the international platforms should be compared. 

Survey to Focus on South Korea’s Leading Exchanges

Key domestic exchanges, such as Upbit, Bithumb, and Coinone, will be under investigation. They prevail in the local market and will be the main frames of the analysis focusing on fee arrangements and the experience of the users. The commission also has not established fixed target rates but it aims to form benchmark policies following comparisons between the South Korean models of fees and foreign exchanges.

The officials also insisted on a fair pricing model that would incorporate a balance between operation cost and investor accessibility. The FSC, through the analysis of the disparity between home and foreign practice, hopes to get answers as regards whether Korean investors have been discriminated against and how the fee mechanisms could be at their best without interfering with the exchange activities.

Institutional Trading Ban Lifted Amid Regulatory Overhaul

Simultaneously, South Korea has also removed the prohibition of institutional cryptocurrency trading in a gradual manner with effect in 2025. Strict regulations allow professional investors and public corporations to make a move into digital asset markets. Such changes are the strict anti-money laundering and Know your customer standards imposed on banks and exchanges.

It is rolled out with the FATF Travel Rule, stipulating that service providers should share transaction data when carrying out transfers above KRW 1 million. Moreover, the proposed permits allow non-profits that are registered five years or more with audited experiences to sell given digital assets with day-to-day sales and AML provisions. These are evolutions that show a wide-ranging regulatory change towards the increase in market openness and investor confidence.

The post South Korea Launches Probe into Crypto Exchange Fee Structures first appeared on Coinfea.

The allegations, which only recently came to light, claim that Mr. Jeon received bribes amounting to an astounding 2 billion won (equivalent to $1.51 million) for listing particular virtual assets on his exchange platform.

Among the cryptocurrencies highlighted is “Furiever Coin,” which was exclusively listed on Coinone. Adding a dramatic twist to the unfolding situation, Furiever Coin is now connected to an ongoing kidnapping and murder investigation in Seoul’s upscale Gangnam district, intensifying the seriousness of the entire scenario.

On his arduous journey, Mr. Jeon is not alone; his broker, “Mr. Ko,” joins him. Ko is currently facing allegations of abetting illegal listings. During a court proceeding on May 25, their legal teams made a surprising confession, acknowledging the prosecution’s allegations as factual.

Nevertheless, they underscored their need for more time to thoroughly sift through all the evidence. They committed to providing a final stance after a complete review.

The leader of Coinone’s listing team and another implicated broker are also entangled in the controversy. Their attorneys, too, have requested additional time to analyze the evidence thoroughly. They assured that they would present their responses to the accusations at the forthcoming trial hearing on June 15.

This shocking revelation has rippled across the crypto industry, underscoring the urgency for transparency and robust regulatory supervision in the swiftly advancing world of digital assets. The Coinone controversy is a powerful reminder of the potential hazards that dishonorable actions can create, stressing the importance of diligence within the crypto sphere.

As the probe deepens, the authorities ramp up their attempts to unearth any further connections between the alleged corrupt practices and a horrifying kidnapping and murder incident. The verdict of this trial could profoundly influence the cryptocurrency marketplace, underlining the need to maintain the credibility and reliability of crypto trading platforms.

The global audience is on edge, closely observing the progress of the South Korean judiciary with this precedent-setting lawsuit. The hope is that justice will be served and that this case will catalyze significant reforms in the cryptocurrency sector, thereby providing a safer environment for its participants.

The circumstances call for rigorous introspection and swift action from regulatory bodies worldwide. It’s not just about enforcing punitive measures, but also about instituting proactive policies that will help prevent such incidents in the future.

This scandal could be a turning point, leading to more stringent checks and balances within the industry. The end of cryptocurrency and its public perception hinges on how effectively the industry learns and evolves from these incidents.

The post Former Coinone executive embroiled in bribery case tied to gruesome kidnapping and murder investigation first appeared on Coinfea.