7 Arrested in Police Sting on Crypto-Related Narcotics Dealing

South Korean police in South Jeolla Province have arrested seven suspects in a raid on a "crypto-powered drug dealing" ring.

According to the media outlet KBC, authorities believe the group was involved in smuggling methamphetamine into the country from overseas.

The bags of methamphetamine seized during a raid on a suspected drug dealer

The province's Narcotics Crime Investigation Unit, part of the Mobile Criminal Investigation Department, has since handed the case over to prosecutors for further action.

Crackdown on Crypto-Powered Drug Deals

On 23 September, authorities announced the arrest of a 33-year-old suspected drug dealer on charges of violating the Narcotics Control Act.

Six additional individuals, aged 20 to 49, have also been charged with purchasing and using methamphetamine.

The suspected dealer is accused of collaborating with a drug distribution network to conceal methamphetamine at 118 locations across Gwangju's West and North districts.

According to police, the dealer packaged the narcotics in plastic and paper, securing them with double-sided tape for delivery.

The hidden drug "dead drop" sites included railings of apartment buildings, a communication terminal box, a fire hose compartment, and an outdoor air conditioning unit.

Police Operation

Investigators appear to have orchestrated a sting operation to apprehend the suspected dealer.

By searching social media for crypto-related slang, they were able to identify potential leads.

Using a chat app, likely Telegram, they contacted the suspect and paid for drugs using cryptocurrency in an effort to uncover his identity.

A package containing narcotics, hidden on a remote mountain path, dugged up by Jeonnam Provincial Police Agency officials

This strategy led officers to not only the suspect but also his "drug den." Police seized 103.4 grams of methamphetamine hidden in a mountain in Gyeonggi Province and an additional 83.35 grams concealed around Gwangju.

The total drug haul, with an estimated street value of 620 million won (approximately $465,000), equated to 6,200 individual doses.

Authorities are now expanding their investigation to uncover the full scope of the drug distribution network.

Drugs Epidemic Caused by Crypto?

Earlier this year, media reports suggested that Telegram has effectively become a "crypto-powered narcotics marketplace" for South Korean users.

More recently, South Korean customs officials attributed an 18% rise in drug smuggling cases to the increasing use of cryptocurrency.

Officials reported seizing 769kg of narcotics last year, a significant increase from the 624kg confiscated in 2022.

Some observers argue that this surge in drug activity underscores the growing severity of the nation's crypto-fuelled narcotics "epidemic," despite ongoing law enforcement efforts to curb it.