Two Vietnamese Nationals Sentenced for USDT-Fueled Laundering

A South Korean court has sentenced two Vietnamese nationals to two years in prison, for their role in aiding a voice phishing ring launder money using the world's largest stablecoin, Tether.

The two defendants, identified as a 23-year-old college student surnamed Duong and an unemployed individual also named Pham, were both charged under the Special Act on Prevention of Telecommunications and Financial Fraud and Refund of Damages.

According to prosecutors, Duong and Pham were both recruited through Telegram, where the ring instructed the pair to receive proceeds from their phishing operations, collected in Korean Won, later converted to USDT before transferring the cryptocurrencies back to a crypto wallet controlled by a gang member in Vietnam.

The duo was rewarded with a commission ranging from 50,000 won to 100,000 won for every 10 million won they laundered .

The voice phishing ring targeted Korean victims by impersonating various officials, including credit card delivery workers, insurance company employees, National Tax Service staff and even public prosecutors.

Victims were often told that the callers were checking the safety of their bank accounts, leading to thousands of dollars in fraudulent cash transfers.

Defence Deserves To Be Severely Punished

Presiding Judge Lee Jeong-hyeong of the Seoul Eastern District Court’s Criminal Division handed down the sentences on June 22, 2025.

While the judge noted that the defendants had no prior criminal records in South Korea, he emphasized the severity of their role as intermediaries in the scheme. Judge Lee stated

“Even if the defendants did not orchestrate the crime, they must be severely punished. They played an essential role in the crime, acting as intermediaries. They have also not made any special efforts to help compensate the victims for the damages incurred.”