Korea’s FIU Sounds Alarm as Suspicious Crypto Reports Double in 2025

South Korea’s Financial Intelligence Unit (FIU) reported over 36,000 suspicious cryptocurrency transactions from January to August 2025, surpassing the combined figure for the previous two years.

The steady rise shows growing risks of money laundering and foreign-exchange schemes that use stablecoins and other digital assets. As domestic cryptocurrency investors exceed 10 million, officials are urging stronger oversight and faster action.

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Suspicious Activity Reports Reach New High

South Korea faces a sharp increase in questionable cryptocurrency transactions. Between January and August 2025, the FIU received 36,684 suspicious transaction reports (STRs), which already tops the combined 35,734 reports recorded in 2023 and 2024. The figures show how quickly potential crypto-related crimes are expanding.

Under the Act on Reporting and Use of Certain Financial Transaction Information, local exchanges must file STRs when they suspect money laundering or other illegal activity. These filings include cases where criminals convert illicit funds into digital assets abroad and then move them back to domestic platforms for cashing out.

The rise has been steady. The FIU logged 199 STRs in 2021, 10,797 in 2022, 16,076 in 2023, and 19,658 in 2024. By August 2025, reports had already doubled last year’s total. Therefore, regulators see a clear upward trend that mirrors rapid crypto adoption.

Customs Data Show Billions in Illicit Flows

Moreover, the Korea Customs Service reported crypto-related crimes worth 95.6 trillion won (about US$71 billion) sent to prosecutors from 2021 through August 2025. About 90 percent involved unregistered currency exchange schemes to move funds across borders without detection.

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One case in May illustrates the risk. A currency dealer allegedly helped transfer about 57.1 billion won by issuing dollar-denominated Tether (USDT) stablecoins to Russian importers in exchange for cash. Officials say such deals show how stablecoins can mask cross-border fund flows and make enforcement harder.

Global Crypto Crime Trends Highlight Broader Risks

Meanwhile, crypto-related crime is rising worldwide. BeInCrypto has reported several high-profile cases that reveal both scale and sophistication. In August, Hayden Davis, a promoter of the LIBRA project, was charged with profiting about US$12 million through a scheme tied to Kanye West’s YZY Snipe venture.

North Korean hackers have also targeted crypto professionals with fake job offers that hid malware in video apps and coding challenges. In Japan, police uncovered a fraud ring that laundered roughly $7.5 million through crypto exchanges to fund organized crime. These incidents highlight the global reach of crypto-enabled financial crime.

Governments are responding. Coinbase and Binance launched the Beacon Network in the US to coordinate real-time actions against crypto crime. Likewise, Turkey announced a sweeping review of its digital-asset rules to curb money laundering, illegal gambling, and fraud. Such moves show that coordinated action is becoming urgent.

Lawmakers Urge Stronger Oversight

Ruling Democratic Party’s Former Chair of Policy Committee Jin Sung-joon obtained the FIU data and called for stricter controls. He warned that stablecoins are now common in real-world payments, creating new opportunities for foreign exchange violations. Therefore, he urged the FIU and the Customs Service to strengthen investigations and block disguised remittances.

Jin added that effective monitoring requires technology and cooperation among regulators, law enforcement, and exchanges. South Korea may see further growth in crypto-related crimes without a stronger framework, even as domestic investors surpass 10 million.