South Korean police recently conducted a raid on a suspected crypto-powered drugs trading gang, resulting in the arrest of 49 individuals. The gang had reportedly smuggled and sold almost $1.5 million worth of narcotics to buyers who paid with cryptocurrency. The group’s alleged ringleader, based in the Philippines, is currently being pursued by authorities. Gang members were said to have smuggled drugs such as methamphetamine and synthetic marijuana into South Korea from the Philippines, also selling drugs to buyers in the Philippines.
The gang used various methods to conceal and distribute drugs, including using drug smugglers to hide bags of narcotics inside women’s sanitary products. These smugglers attempted to avoid detection at airports by wearing the concealed drugs in their underwear. The gang communicated with drug users through 11 different Telegram channels, with the buyers making payments in cryptocurrency. The group arranged for dead-drops of narcotics in residential areas chosen by buyers, hiding the drugs in electric terminal boxes and fire hydrants.
Police arrested suspected dealers, smugglers, and drug users in both South Korea and the Philippines as part of the operation. The group had started its operations in August of the previous year, with some arrestees facing charges related to drug use. Law enforcement officers confiscated 4.8kg of drugs, including 1.2kg of methamphetamine, as well as almost $41,000 worth of fiat currency. Police were able to track the gang by analyzing Telegram messages and footage from over 1,500 CCTV units.
In response to the increasing trend of crypto-powered drug trafficking, South Korean President Yoon Suk-yeol declared an “all-out war” on such criminal activities. The government is mobilizing its resources to combat drug crimes that involve cryptocurrency transactions. Last year, President Yoon emphasized the importance of fighting against drug trafficking, particularly among teenagers who have been engaging in buying and selling drugs using cryptocurrency. With the rise in the use of cryptocurrency for illegal activities, law enforcement agencies are intensifying their crackdown on drug crimes facilitated by digital currencies.
In February, Seoul police reported 452 arrests on crypto- and drug-related charges within a specific period. A recent report highlighted the prevalence of dead-dropped drugs in major cities, purchased through crypto transactions, contributing to the growing issue of drug trafficking in the country. The use of cryptocurrency has made it easier for criminals to conduct illicit drug transactions while evading traditional financial monitoring. South Korean authorities are working in collaboration with international agencies such as Interpol and the Philippines law enforcement to address the complexities of crypto-powered drug crimes. The government is committed to investigating and prosecuting individuals involved in internet drug transactions to ensure the safety and security of the public.
