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- Zafar Naik
Zafar Naik
- Reviewed by:
Qadir AKQadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Sep 22, 2025 10:40 UTC
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South Korea Reports Record 36K+ Suspicious Crypto Transactions in 2025
South Korea flagged a record 36,684 suspicious crypto transactions in the first eight months of 2025.
Most cases involved illegal foreign remittance and money laundering schemes tied to stablecoins like Tether.
Lawmakers are pushing for tougher crackdowns as the surge highlights a growing global challenge.
South Korea has hit a new milestone in crypto monitoring but it’s not one to celebrate. Authorities say the number of suspicious crypto transactions flagged this year has already smashed past the combined totals of the last two years.
What does this mean for you? Read on.
Record Surge in Reports
Between January and August 2025, local exchanges filed 36,684 suspicious transaction reports (STRs) with the Financial Intelligence Unit (FIU). That’s more than double last year’s total and far above the 16,076 cases in 2023.
The rise has been steep. Back in 2021, only 199 cases were reported. By 2022, that number shot up to nearly 18,000, and the curve hasn’t slowed since.
Illegal Remittances Driving the Spike
Officials say the bulk of these cases involve “hwanchigi”, or illegal foreign remittance schemes. Here, funds are converted into crypto through overseas platforms, funneled into local exchanges, and then cashed out in won.
The numbers highlight the scale: from 2021 through August 2025, the Korea Customs Service (KCS) referred ₩9.56 trillion ($7.1 billion) in crypto-related crimes to prosecutors. Of that, more than 90% came from money laundering schemes linked to hwanchigi.
Stablecoins in the Crosshairs
Stablecoins, once promoted as the future of easy payments, are now a growing concern for regulators. In May, customs officials uncovered a broker accused of moving ₩57.1 billion ($42 million) between South Korea and Russia using Tether (USDT). Two Russian nationals reportedly carried out over 6,000 illegal transactions between 2023 and 2024.
“As stablecoins have recently become widely used as a means of payment and settlement in the real economy, the potential for them to be misused for foreign exchange crimes such as money laundering is increasing,” said Rep. Jin Seong-jun.
Lawmakers Push for Stronger Action
Rep. Jin called on agencies like the FIU and KCS to strengthen their response, stressing the need for “systematic measures against new types of foreign exchange crimes” and tougher crackdowns, including tracking criminal funds and blocking disguised remittances.
A Global Problem, Not Just Korea’s
South Korea’s record figures reflect a wider challenge for regulators worldwide. The EU’s MiCA framework already places strict limits on stablecoin transactions, while central banks in Europe and the UK have floated caps on digital currencies to keep illicit flows in check.
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As crypto adoption grows, so does the scale of misuse. South Korea’s numbers are a reminder that regulators everywhere are racing to keep up.
FAQs
Suspicious crypto reports hit record highs due to illegal remittance schemes using crypto for money laundering and foreign exchange crimes.
“Hwanchigi” is an illegal foreign remittance method where funds move through overseas crypto exchanges before being cashed out locally.
Stablecoins like Tether are flagged as criminals use them for cross-border money laundering due to their fast and borderless payment features.
No, crypto crime is a global issue. Regulators worldwide, from the EU to the UK, are imposing stricter rules on crypto to prevent illegal transactions.
Yes 
No 
