South Korea Court Sentences Man to 8 Years for Operating Fake Securities Platform and Laundering $4.2 Million Through Cryptocurrency

A South Korean court handed a eight-year prison sentence to the operator of a fake securities trading platform who laundered roughly $4.2 million of illicit proceeds through cryptocurrency. In the Gwangju District Court, the defendant replicated the logo and data of a well-known securities firm to boost credibility, with the scheme affecting 116 victims.

An accomplice, aged in his early 40s, aided in moving about $2.9 million into cryptocurrency via company accounts and private wallets to complete the laundering cycle, illustrating a coordinated money laundering operation tied to investor funds.

This case highlights the rising crypto crime trend. FBI data show cryptocurrency investment scams exceeding $5.8 billion in losses in 2024, while DeFiLlama reports over $2.4 billion stolen through hacks in 2025, with rug-pull incidents totaling around $4 billion in 2024, per industry trackers.