The Thai crypto fraud ring “Lungo Company” laundered an estimated $15 million using chain-hopping, unregulated OTC laundering, parasite exchanges and prepaid crypto services, victimizing 870+ South Koreans; 25 suspects were arrested in Seoul and nine detained in Thailand pending extradition.
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Laundering method: chain-hopping and OTC brokers to convert crypto to cash quickly.
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Scope: ~870 victims, ~$15 million laundered, 25 arrests in South Korea and nine detained in Thailand.
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Detection challenges: cross-chain swaps, parasite exchanges, micro-transactions and prepaid crypto cards increased tracing complexity.
Thai crypto fraud ring Lungo Company laundered $15M via chain-hopping and OTC brokers; read how investigators traced funds and what victims should do next.
What is the Thai crypto fraud ring Lungo Company and how much did it launder?
The Thai crypto fraud ring Lungo Company is a multi-method criminal network accused of laundering roughly $15 million by combining romance scams, fake lottery offers and crypto investment cons. South Korean and Thai authorities report more than 870 victims, 25 arrests in Seoul, and nine detentions in Thailand pending extradition.
How did the ring use chain-hopping and OTC laundering to obscure funds?
The group used chain-hopping—rapidly moving assets across multiple blockchains—and unregulated over-the-counter (OTC) broker networks to convert crypto into fiat with minimal scrutiny. Cybercrime consultant David Sehyeon Baek told COINOTAG these OTC operations are common in Thai tourist areas and facilitate quick cash-outs while bypassing bank controls.
| Metric | Value |
|---|---|
| Estimated laundered | $15,000,000 |
| Reported victims | 870+ |
| Arrests (Seoul) | 25 |
| Detentions (Thailand) | 9 |
| Parasite exchange fee range | 7%–15% |
| Comparative hack cited | $28.1 million theft (recent Seoul case) |
Why do chain-hopping and parasite exchanges frustrate investigators?
Chain-hopping and parasite exchanges fragment transaction trails by moving value across multiple protocols and masking connections to regulated infrastructure. According to expert commentary reported in COINOTAG, cross-chain bridges, decentralized exchanges and no-KYC swap services let criminals convert assets quickly, forcing investigators to trace funds manually across dozens of protocols.
What other laundering tactics did investigators identify?
Authorities and consultants identified a layered set of tactics:
- Prepaid crypto-funded cards used for ATM cash withdrawals to produce fiat without clear provenance.
- Casino laundering where funds are converted into gambling wins to appear legitimate.
- Micro-transaction splitting to keep transfers below monitoring thresholds.
- Encrypted coordination via messaging apps such as Telegram and WeChat for operational planning.
Frequently Asked Questions
How can victims check if they were affected by Lungo Company scams?
Victims should review bank and crypto exchange statements for unfamiliar deposits or withdrawals, preserve all communications, and report incidents to local law enforcement and relevant financial institutions immediately.
Can chain-hopping be reversed to recover stolen crypto?
Recovery is technically possible but difficult; successful outcomes depend on rapid reporting, cross-border cooperation and the ability to identify final cash-out points such as unregulated OTC brokers or casino cash-outs.
What penalties do perpetrators face under South Korean law?
Perpetrators face criminal charges for fraud, money laundering and related economic crimes; penalties include long prison terms and asset seizure following conviction under South Korean statutes.
Key Takeaways
- Multi-layered laundering: Lungo Company combined scams and chain-hopping to launder ~$15M.
- Operational complexity: Parasite exchanges and OTC brokers increased anonymity and tracing difficulty.
- Action for victims: Preserve evidence, report quickly, and engage law enforcement for cross-border tracing.
Conclusion
This investigation into the Thai crypto fraud ring underscores how modern laundering blends cross-chain techniques and informal OTC networks to evade detection. Authorities in South Korea and Thailand continue cooperative efforts, and victims are urged to report incidents promptly to assist tracing and potential recovery.
Author: COINOTAG | Published: 2025-09-23 | Updated: 2025-09-23
