South Korean Court Sentences Man for Cryptocurrency Money Laundering

According to ChainCatcher, a South Korean court has sentenced a man to prison for creating a fraudulent securities trading platform and laundering $4.2 million through cryptocurrency. The operator of the fake platform replicated the trademark and data of a 'well-known' securities company to make the scam appear legitimate. The case was heard in the Gwangju District Court's criminal division, where presiding Judge Kim Young-kyu noted that the platform defrauded 116 victims. The man received an eight-year prison sentence. During the court hearing, it was revealed that an accomplice, approximately 41 years old, assisted in laundering $2.9 million by converting it multiple times into cryptocurrency through company accounts and private wallets. This case highlights the surge in criminal activities within the cryptocurrency industry. According to FBI data, reported losses from cryptocurrency investment scams exceeded $5.8 billion in 2024. DefiLlama statistics indicate that cybercriminals stole over $2.4 billion through hacks and exploits in 2025, doubling the amount from 2024. Additionally, so-called 'pig-butchering' scams stole $4 billion in 2024, with Chainalysis data showing a rise in related cases.