South Korean Police Nets Over 450 in Crypto-Linked Drug Bust

South Korean authorities are waging a complex battle against a rising tide of crypto-powered drug trafficking, with recent reports revealing over 450 arrests in the capital Seoul alone. This surge in enforcement activity underscores the growing challenges law enforcement faces globally in tackling criminal activities facilitated by cryptocurrencies.

From June 2022 to December 2023, Seoul Metropolitan Police cracked down on various aspects of crypto-linked drug trafficking, leading to the arrest of 452 individuals.

This figure includes three suspected drug dealers, 445 alleged drug buyers, and four individuals accused of operating illegal crypto trading platforms.

Notably, the data indicates a concerning trend, with 90% of those arrested falling within the 20-39 age bracket, and five teenagers also facing charges.

South Korean Authorities Target Different Layers of the Network:

The crackdown targeted different segments of the drug trafficking network. Police investigations focused on supply and demand sides, aiming to disrupt the flow of drugs and cryptocurrencies used for transactions.

The majority of seized narcotics involved marijuana (60%) and methamphetamine (23%), while other drugs like ecstasy, synthetic marijuana, and ketamine were also reported.

The report also sheds light on how teenagers are increasingly utilizing readily available online platforms to find drug dealers. Social media platforms like Twitter and Telegram appear to be common channels, raising concerns about the ease of access to illicit activities for younger demographics.

Read Also: South Korean Police Break Up “International Crypto Fraud” Ring, Seizing $1.2 Million

“Many people think that if they use the dark web or certain chat apps or social media platforms, their anonymity will be guaranteed. They think police officers will not be able to track them. However, investigative personnel with extensive investigative experience are constantly on the lookout for drug offenders.”

Nam Sung-shin

A crucial element of the crackdown involved utilizing crypto and blockchain monitoring tools. By tracing cryptocurrency transactions associated with suspected drug deals, authorities were able to identify suspects and make arrests.

This highlights the growing sophistication of law enforcement agencies in leveraging technology to combat crypto-related crime.

Marking a significant step in their efforts, South Korean authorities also managed to shut down a suspected illegal crypto exchange believed to be linked to drug trafficking. This marked the first instance of such an operation being successfully dismantled by authorities in the country.

Regulatory Landscape and Ongoing Challenges:

South Korea is actively implementing regulatory measures to address crypto-related risks.

The nation requires all crypto exchanges and wallet operators to acquire licenses from the Financial Intelligence Unit.

However, currently, only five domestic exchanges hold these permits, highlighting the potential gap between regulations and their enforceability.

Read Also: South Korean Crypto Exchanges Report 49% Increase In Crypto Crime In 2023, Flagging 16,000 Transactions