A South Korean national, identified as “Han,” was apprehended in Bangkok, Thailand, on Saturday, January 10, 2025, following allegations of laundering over $50 million in cryptocurrency into gold bars over a mere three months. This arrest highlights the increasing sophistication of crypto scams that continue to plague investors worldwide.
According to Thai authorities, Han is believed to be a prominent player in a fraudulent call-center operation that deceived victims with enticing promises of returns ranging from 30% to 50% on their investments. Initial payouts in small amounts were made to cultivate trust among victims, but they soon encountered withdrawal limits that left them unable to access their funds.
During the investigation, it was revealed that Han had amassed approximately 47.3 million Tether, a stablecoin pegged to the U.S. dollar. He allegedly converted these digital assets into physical gold bars, each weighing over 10 kilograms (approximately 22 pounds) and valued at more than $1 million per transaction. This method allowed the perpetrators to transform digital funds into a tangible commodity, facilitating the movement of illicit gains across borders without detection.
Following a wave of victim complaints, the Thai Criminal Court issued an arrest warrant for Han and his associates in February 2025. So far, eleven individuals have been arrested in connection with this scam, as reported by local media. Thai police captured Han at Bangkok’s Suvarnabhumi Airport, where he faces multiple charges, including fraud, impersonation, computer crimes, money laundering, and participation in a criminal syndicate.
The prevalence of cryptocurrency scams has reached alarming levels, with victims around the world losing an estimated $10.7 billion to such frauds in 2024, according to data from blockchain intelligence firm TRM Labs. Their report indicated a staggering 456% increase in global crypto scams over the previous year. Experts now urge caution, with many recommending that individuals reconsider their involvement in cryptocurrency investments altogether.
Crypto’s unique attributes—being borderless, instantaneous, and anonymous—have significantly enabled cross-border scams, allowing criminals to evade the usual regulatory scrutiny associated with traditional financial transactions. This development comes as the Thai government seeks to leverage cryptocurrency to rejuvenate its tourism sector. Recently, Thailand announced an 18-month pilot program that permits tourists to convert crypto into the local currency, the Thai baht, through local crypto exchange platforms, thereby facilitating payments to businesses.
To mitigate risks, the Thai Finance Ministry has implemented a cap on conversions, limiting them to 550,000 baht (approximately $17,000) to prevent potential money laundering activities. South Korea, Han’s home country, has a notorious history with cryptocurrency scams; just under a year ago, police arrested over 200 individuals linked to a scheme that defrauded victims of more than $228 million, marking it as the largest cryptocurrency scam in the nation’s history.
As the landscape of cryptocurrency continues to evolve, the need for vigilance and regulatory oversight becomes increasingly critical. The ongoing cases serve as a stark reminder of the risks associated with digital currencies and the importance of thorough due diligence before investing.
“The borderless, instantaneous, and anonymous nature of crypto transactions facilitates these criminal operations,” experts caution.
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