South Korean Authorities Detain 34 Individuals in Operation Targeting Cryptocurrency-Enabled Drug Trafficking Network

On May 16, South Korean authorities announced the arrest of 34 individuals during a raid targeting a suspected drug smuggling operation that utilized cryptocurrency.

According to Newsis, law enforcement officials confiscated 90,000 doses of various drugs, including methamphetamine (crystal meth), synthetic marijuana, and ketamine.

Authorities indicated that the operation employed smugglers based in Vietnam to conceal the narcotics within cosmetic products.

Members of the gang allegedly dispatched these items to South Korea using international courier services.

Crypto-Fueled Drug Smuggling Operation ‘Concealed Narcotics in Mountain’

Police reported that they have detained nine individuals, including two suspected South Korean leaders of the operation, both aged 36.

Additionally, 25 other individuals have been charged with related offenses. The authorities stated that the operation was active from August 2023 until April of this year.

A police spokesperson noted that the group sold the narcotics online to buyers who paid with cryptocurrency. The organization reportedly utilized Telegram for communication.

Items seized by the police in raids. (Source: Chungbuk Provincial Police Agency)

Recent reports have suggested that Korean-language Telegram channels have turned into a “department store” for drug purchasers and sellers.

The Chungbuk Police Agency stated that its criminal task force’s drug crime investigation unit conducted the raids.

A police spokesperson elaborated that the suspected leaders concealed the drugs they received in a “hole in a mountainside.”

Upon investigating this location, authorities discovered nearly six liters of synthetic marijuana solution.

This particular seizure is estimated to be “worth over $1 million” in the domestic market, according to police reports.

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Investigators also uncovered 181g of methamphetamine and 31g of ketamine, all “buried underground in rural areas.”

Authorities stated that gang members would periodically visit the hiding spot to divide the synthetic marijuana “into 10ml units (vials).”

They would then “market these through social media platforms like Telegram.” In each instance, recipients would “pay in cryptocurrency,” police reported.

The headquarters of the Chungbuk Provincial Police Agency. (Source: hyolee2 [CC BY-SA 3.0])

Investigation Still Ongoing, Say Police

Law enforcement released images of lipstick and other cosmetic containers, explaining that the gang concealed drugs within these items before shipping them from Vietnam.

Authorities also reported seizing funds exceeding $245,000 and indicated that the investigation remains active.

The spokesperson mentioned that police suspect that “other individuals” may be involved, “including overseas suppliers.”

Park Ji-hwan, the head of the unit, stated that all cases have been forwarded to the prosecution service.

The police chief urged the public to “report any suspected instances” of crypto-related drug offenses “to the investigative agencies.”

Last year, President Yoon Suk-yeol declared an “all-out war” on crypto-related drug trafficking, following a significant increase in drug offenses among youth.

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