South Korean Court Sentences Two Vietnamese Nationals for Money Laundering
In a significant ruling, a South Korean court has sentenced two Vietnamese individuals to two years in prison for their roles in a transnational money laundering operation utilizing Tether (USDT), a popular stablecoin. The pair, aged 23, identified only as Duong—a college student—and Pham—an unemployed individual—were convicted on June 22 after being found to have facilitated the laundering of funds obtained through voice phishing scams.
Details of the Operation
According to reports from Financial News, the Seoul Eastern District Court’s Criminal Division, led by Presiding Judge Lee Jeong-hyeong, revealed that the duo had first connected with a voice phishing scam network via an open Telegram chat in October of the previous year. They were misled into believing they would receive money in Korean won from the scam operations.
Upon receiving the funds, Duong and Pham were instructed to convert this money into USDT. They subsequently transferred the converted cryptocurrency to a wallet belonging to a member of the voice phishing group located in Vietnam. For their participation, the two received commission payments ranging from 50,000 won (approximately $36.44) to 100,000 won (about $72.88) for every 10 million won (around $7,288) worth of USDT they processed.
The Court’s Remarks
During the trial, it was revealed that the scam ring had successfully deceived numerous victims based in South Korea, extracting significant sums under the guise of various impersonations, including credit card delivery personnel and tax service agents. The operations were marked by a variety of money laundering strategies involving accomplices from not only Vietnam but also Uzbekistan.
Judge Lee expressed that while the defendants’ lack of prior criminal history in South Korea was considered, it was imperative to acknowledge the increasing trend of USDT-related offenses within the nation. He noted a concerning rise in fraudulent over-the-counter transactions and thefts associated with USDT as the stablecoin continues to gain traction among the public.
