Key facts
- South Korean police arrested 23 individuals and detained two key figures.
- The suspects are accused of laundering $11.1 million in USDT for a Cambodia-based phishing operation.
- The alleged ringleader is subject to an Interpol Red Notice.
- Approximately $431,000 in illicit proceeds were confiscated.
- The operation involved moving USDT between domestic and overseas exchanges.
South Korean police have arrested 23 individuals and detained two key figures in connection with a $11.1 million USDT money laundering scheme allegedly orchestrated by a Cambodia-based phishing group. The suspected ringleader remains at large and is the subject of an Interpol Red Notice. The group is accused of moving the USDT across domestic and overseas exchanges between February 2024 and April 2025. Investigators also seized approximately $431,000 in illicit proceeds. A review of over 11,300 linked accounts uncovered 265 instances of phishing harm, totaling $17 million. Experts warn that transnational criminal networks in Southeast Asia are resilient and adaptable, quickly filling gaps left by enforcement actions. Stablecoins like USDT are preferred for illicit flows due to their liquidity and portability, though on-chain transactions remain traceable and issuers can freeze funds.