Thailand has cracked a major money laundering case involving encryption! South Korean suspects used USDT to purchase gold, laundering over 50 million USD, involving at least 30 gold transactions.

Thai police arrested a 33-year-old South Korean suspect, Han, who is accused of laundering over $50 million through encryption. The criminal group used USDT to purchase gold bars for cross-border money laundering, completing at least 30 transactions, each involving no less than 10 kilograms of gold. This case once again highlights the risks of money laundering through Crypto Assets and the regulatory challenges.

1. Details of the cross-border money laundering case: USDT purchased gold bars for money laundering of 50 million USD.

The Thailand Cyber Crime Investigation Department (TCSD) arrested a South Korean suspect, Han, at Suvarnabhumi Airport on August 23. Investigations revealed that between January and March 2024, he processed over 47 million USDT through associated encryption wallets, and these funds were used to purchase gold bars for money laundering. Each transaction involved more than 10 kilograms of gold, with a total of over 30 transactions.

II. Analysis of the Modus Operandi: Call Center Fraud and Crypto Assets Gold Conversion

Han is suspected of collaborating with an overseas gold supplier to convert the proceeds of fraud in encryption into gold bars and then transport them abroad. Multiple encryption accounts and wallet logs were found on his mobile phone, consistent with large-scale money laundering activities. According to his confession, he studied in China for six years and later worked for a Korean company that specializes in converting illegal digital assets into physical goods.

3. Unveiling the Scam Model: High-Yield Investment Bait Ultimately Freezes Accounts

The money laundering network is associated with call center scam groups, where scammers use simple online tasks as bait, initially offering small payments to gain trust, and then promoting "investment projects" with annual returns of 30%-50%. Investors ultimately find their accounts frozen and unable to withdraw funds. Previously, Thai police arrested 10 related suspects, among whom 5 were suspected of money laundering, while others operated puppet bank accounts used for receiving funds.

4. Global Regulatory Tightening: Multiple Countries Join Forces to Combat Crypto Money Laundering

This case is part of the global effort to combat Money Laundering in the crypto space.

• The Beijing court ruled in July on a $20 million money laundering case involving former employees of a video platform laundering money through 8 foreign exchanges.
• The U.S. Department of Justice filed a lawsuit against a Russian encryption entrepreneur in June, involving a $500 million Money Laundering scheme.
• Thai police stated that they will continue to investigate other leads in the case.

5. In-depth Comparison: The Evolution of the Role of Crypto Assets vs Traditional Gold in Money Laundering

6. Comparison of Anonymity

   1. Crypto Assets: On-chain transactions are traceable, but mixers increase the difficulty of tracking.
   2. Gold: Physical transactions are unrecorded but there are risks in transport and storage.

7. Cross-border Liquidity

   1. Crypto Assets: Global transfers in minutes, with no physical borders
   2. Gold: Cross-border transport requires customs declaration and is subject to customs supervision.

8. Value Density

   1. Crypto Assets: Private keys can store hundreds of millions of dollars in value
   2. Gold: High value density but physical volume still poses a limitation

9. Regulatory Response

10. Crypto Assets: Exchange KYC/AML requirements are continuously strengthening. 2. Gold: Purchases over 20,000 yuan require real-name registration (Chinese standard)

11. Investor Protection Recommendations: Identify Crypto Money Laundering Red Flags

12. Promising unreasonable investment returns (annualized over 30%)

13. It is required to use stablecoins such as USDT for investment.

14. The receiving address is frequently changed and there is no clear entity association.

15. Requesting additional margin for various reasons when withdrawing.

VII. Regulatory Trends Outlook: Global Standardization of Crypto Assets Anti-Money Laundering Standards

With the gradual implementation of the FATF (Financial Action Task Force) travel rule:

• Transfers over 1000 USD require verification of sender and receiver information
• Exchange required shared trading data
• DeFi protocols may be subject to regulatory oversight. Investors should choose trading platforms that strictly adhere to KYC/AML standards.

[Conclusion]

This case once again highlights the risks of Crypto Assets being used for cross-border Money Laundering, but at the same time, it also shows that law enforcement agencies' ability to track blockchain transactions is continuously improving. For investors, it is important to avoid participating in investment schemes that promise unreasonable returns, especially when the other party requires payment in encryption. In the long run, advancements in regulatory technology and international cooperation will make the cost of Money Laundering using Crypto Assets increasingly high, helping to purify the market environment.