Illegal Foreign Exchange Transactions of Used Car Export Proceeds with Virtual Assets...100 Billion Won-Scale Foreign Exchange Transaction Uncovered

Illegal Foreign Exchange Transactions of Used Car Export Proceeds with Virtual Assets...100 Billion Won-Scale Foreign Exchange Transaction Uncovered

A man who orchestrated 100 billion won-scale foreign exchange transactions by illegally exchanging used car export proceeds using virtual assets has been caught by customs.

Busan Main Customs announced on the 28th that it has sent a 40-year-old man, Mr. A, 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 in collusion with used car importers from Uzbekistan and others for 1 year and 3 months, starting from September 2024.

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

The man then sent these (virtual assets) to his domestic virtual asset exchange account, converted them into cash via his bank account, and subsequently paid the vehicle price to the domestic used car exporters.

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

Customs determined that in this process, the man illegally conducted transactions worth approximately 108 billion won directly, pocketing about 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 deposits of virtual assets received from overseas due to transaction volumes in the hundreds of millions of won, the man found bypass methods to evade the financial authorities' investigation.

Using these methods, the man was also cleared of charges 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 transaction accounts to gain illicit profits such as payment convenience and low fees, in accordance with the Foreign Exchange Transactions Act.

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