Illegal Foreign Exchange Transactions of Used Car Export Proceeds Using Virtual Assets...100 Billion Won Foreign Exchange Deal Uncovered

Illegal Foreign Exchange Transactions of Used Car Export Proceeds Using Virtual Assets...100 Billion Won Foreign Exchange Deal Uncovered

A man who spearheaded illegal foreign exchange transactions worth 100 billion won by illicitly exchanging used car export proceeds using virtual assets has been caught by customs.

Busan Headquarters Customs announced on the 28th that they have referred Mr. A, a man in his 40s, to the prosecution without detention on charges of violating the Foreign Exchange Transactions Act.

The man is suspected of orchestrating organized illegal foreign exchange transactions (hwanchigi) in collusion with used car importers in Uzbekistan and others for 1 year and 3 months starting from September 2024.

According to customs, overseas used car importers, after concluding vehicle import/export transactions with domestic used car exporters, remitted virtual assets to the man's overseas account.

The man then sent these assets to his domestic virtual asset exchange account, cashed them out through his bank account, and subsequently paid the vehicle price to the domestic used car exporter.

The virtual asset used by the man in these transactions was 'Tether,' a representative stablecoin.

Customs determined that during this process, the man illegally conducted transactions worth 108 billion won directly, pocketing approximately 130 million won in fees. Normal trade transactions must go through official financial institutions such as banks.

The man exchanged information about cryptocurrency transactions and accounts for transferring funds via Telegram.

When domestic cryptocurrency exchanges withheld the deposit of virtual assets transferred from overseas due to transaction volumes in the hundreds of millions of won, the man found alternative means to evade the financial authorities' investigation.

Using such methods, the man was acquitted in a police investigation last year related to the distribution of criminal proceeds.

Customs also imposed fines of approximately 1.3 billion won on 15 used car dealers who used the man's illegal foreign exchange accounts to gain illicit benefits such as payment convenience and low fees, in accordance with the Foreign Exchange Transactions Act.

An official from Busan Headquarters Customs stated, "If cars are exported but the payments do not flow in as dollars but accumulate only as virtual assets, it will inevitably have some impact on the formation of high exchange rates." He added, "We plan to expand the investigation to other used car exporters who used illegal foreign exchange accounts."