South Korea takes down crime ring laundering money from illegal gambling

• Police in South Korea organized a massive operation against an organized crime ring
• Culprits offered money to mule account holders and used such accounts to launder proceeds from illegal gambling and prostitution
• A total of 59 people, including the organization's alleged ringleader, were detained and currently face charges

Law enforcement in South Korea dismantled a large-scale criminal ring that involved the use of mule accounts for laundering proceeds from prostitution and illegal gambling.

Nearly 60 people, including an employee from a leading bank in the country, were detained and currently face charges.

Mule bank accounts were used by the group to launder ill-gained funds

As announced in a report by The Chosun Daily, the Gyeonggi Nambu Provincial Police Agency's Criminal Investigation Unit, arrested a total of 59 individuals, suspected of being involved in the criminal organization.

Among the detainees was the operation's mastermind, a person in his 30s referred to in documents as "Mr.A".

Besides the ringleader, police also detained a person in his 20s, referred to in court documents as "Mr.B," who was reportedly employed by a leading South Korean bank.

Mr. B served as a call center employee and was in charge of overseeing account freezes and voice phishing reports.

What's known so far is that the criminal group posted job offers online, promising account holders 1 million Korean won, or approximately $685 per month as "monthly rent."

In other words, account holders who agreed to join the scheme would grant the criminal group access to their accounts and receive payment in exchange.

Those accounts would then be used for laundering money on behalf of the criminal group, as well as other unlawful organizations.

Considering that the accounts were used by criminal organizations to launder proceeds from illegal gamblingand prostitution, it didn't take long for the illicit activity to capture the attention of law enforcement.

Still, for the time the scheme operated, between June 2023 and recently, 101 mule accounts were sold.

Police seized assets, raised charges against the suspects

The recent arrests saw law enforcement detain members of the group and also seize a number of assets.

Notably, police seized expensive jewelry, luxury goods, and cars, including a Rolls-Royce.

Considering the scale of the operation, per the recent report, law enforcement filed a request for pre-indictment asset recovery of approximately 1.752bn Korean won, or $1.2m, in criminal proceeds.

Currently, Mr. A, along with 58 members of the group, are facing charges under the Criminal Organization Act.

On the other hand, Mr. B, the bank call center employee, who, according to police, provided information in exchange for money, was hit with charges under the Financial Real Name Transaction Act, while further charges under the Criminal Organization Act against them are still pending.

To ensure that mule account holders wouldn't run withdraw and run away with the funds from their accounts, the criminal group organized an "enforcement team."

When one of the so-called mules decided to withdraw 220m Korean won ($150,500) and run away, Mr. A dispatched the aforementioned team.

Members of the enforcement team located the individual in question, kidnapped them for two months, beat them and shaved their head.

A video of some of those violent acts was posted via a Telegram channel as a warning against others who may try to take the money and run away.

Culprits, accused of participating in the "enforcement team," face additional charges of special robbery and joint coercion.

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