Thailand Police arrest key suspect in $50M crypto-to-gold laundering ring

Police in Thailand have arrested a South Korean national who is suspected of laundering more than $50 million worth of illicit cryptocurrency for scammers by converting it to Gold.

The 33-year-old suspect, who was identified as Han, was detained at the Suvarnabhumi Airport in Thailand on Aug. 23. Han allegedly played a central role in laundering funds for call centre scam gangs by acting as a financial conduit in a cross-border operation that used crypto to buy gold bars, per local media reports.

According to authorities, crypto wallets linked to Han processed over 47 million USDT between January and March 2024. These funds were used to purchase gold in at least 30 separate transactions, with each deal involving no less than 10 kilograms of gold.

Investigators at Thailand’s Technology Crime Suppression Division suspect Han worked closely with overseas gold vendors and facilitated shipments to unidentified scam operatives. His phone, recovered during the arrest, was found to be holding access to multiple cryptocurrency accounts and wallet logs consistent with large-scale laundering activities. 

Han told investigators that he studied in China for six years before taking a job with a South Korean company that specialized in transforming illicit digital assets into hard commodities.

Investigators believe his activities were connected to a broader network of scam call centres that had been active as early as 2024. The scam network operated by luring victims with the opportunity of earning money by doing simple online tasks for which they were even paid initially.

However, the real scam unfolded when scammers escalated the pitch, promising victims returns of 30% to 50% on investments in crypto-based “projects.” Ultimately, investors would find their accounts frozen and withdrawals denied.

Ten arrests, and more expected

Before Han’s capture, Thai police had already made ten arrests in connection with the scam. Five of the suspects were accused of laundering money, while the others allegedly operated mule bank accounts used to collect victim deposits.

According to TCSD commander Pol Maj Gen Athip Phongsiwapai, Han was wanted on charges of fraud, impersonation, and money laundering.

For now, he remains in custody, and investigators say they are examining new leads found on devices recovered during the arrest..

Thailand’s investigation coincides with a broader wave of enforcement. Just last month, a court in Beijing sentenced seven people in a $20 million laundering case involving a former video platform employee who embezzled funds and funneled them through eight offshore crypto exchanges.

The month before, a Russian crypto entrepreneur was charged by the United States Department of Justice for their role in enabling a $500 million crypto laundering scheme.