South Korean Authorities Detain 70 Individuals in Operation Targeting Drug Traffickers Using Cryptocurrency

South Korean law enforcement continues its crackdown on drug-related crimes facilitated by cryptocurrency, with authorities in Seoul apprehending 70 individuals.

According to Seoul Kyungjae, the group utilized Telegram chat rooms to promote their offerings to drug purchasers. They allegedly exchanged narcotics for cryptocurrencies, including Bitcoin (BTC).

South Korean Police: Dead Drop Alerted Officers to Gang’s Operations

Authorities reported that a “group of 70 individuals” had “smuggled and distributed various substances, including methamphetamine (crystal meth), ketamine, and synthetic marijuana.”

Law enforcement indicated that the group sourced “raw materials” from Vietnam and operated a makeshift lab within South Korea. Here, they reportedly “produced and stored” the finished drugs.

Officials at the Gangdong Police Station in eastern Seoul announced on June 9 that they had charged the group under the Narcotics Control Act. Police confirmed that 41 members of the group were placed in custody.

A representative stated that the group commenced its activities in September 2023 and continued drug sales until June 20 of this year.

Gangdong Police Station in Seoul, South Korea. (Source: Vitzro2011 [CC BY-SA 3.0])

Authorities reported that the group generated over $4.3 million in revenue from selling drugs to buyers using cryptocurrency.

The spokesperson noted that a tip-off from a member of the public initiated the investigation that led to the raids.

A citizen reported observing “a young man” acting in a “suspicious manner” in the flower bed of an apartment complex.

Law enforcement responded by searching the vicinity, where they ultimately “found a white powder in a balloon.”

Narcotics confiscated by the police in their raids. (Source: Seoul Gangdong Police Station)

Police Make 40kg Drug Bust

Authorities then utilized CCTV footage from the area to locate the individual. They apprehended him at a residence in Ansan, Gyeonggi Province, “four days later.”

They subsequently seized the suspect’s mobile phone, which provided details of a “non-face-to-face transaction.” This transaction appeared to be cryptocurrency-based.

Law enforcement then used this information to arrest a 23-year-old suspected leader, along with a 21-year-old operator of a Telegram open chat.

Authorities stated they discovered “approximately 2,000” of the group’s “drug hiding spots,” leading to the confiscation of a total of 40kg of narcotics.

The seizure also included cannabis resin and various forms of marijuana, such as liquid marijuana. Additionally, it comprised MDMA (ecstasy), LSD, and phencyclidine (angel dust).

Authorities added that they also confiscated over $7,200 in Bitcoin and other “proceeds.”

Many Gang Members Remain at Large – Police

One of the group’s hideouts reportedly included a hole “in the ground by a river” in Anseong, Gyeonggi Province.

Law enforcement indicated they found liquid drugs concealed in shampoo bottles at multiple locations.

Several members of the alleged drug trafficking ring are still at large, including a second suspected “leader.”

Authorities believe this individual is currently in the Philippines and are in the process of canceling their passport. Police express hope that Interpol will issue a red notice for this “leader.”

Another suspected “operator” of a Telegram drug sales channel also remains unaccounted for in South Korea, according to police.

S. Korea, Thailand seize illegal drugs enough for over 2 mln people https://t.co/x6qF1C5HlE

— Yonhap News Agency (@YonhapNews) July 18, 2023

The spokesperson mentioned that authorities are also searching for several suspected smugglers, transporters, and drug purchasers.

Law enforcement concluded by stating they had dealt “a blow to the drug distribution market” and had “blocked the distribution of large quantities of drugs” within South Korea.

Telegram a ‘Crypto-powered Narcotics Department Store’ as ‘Drug Pollution’ Spikes

This year, South Korean media outlets have lamented a significant increase in “drug pollution,” with crypto-facilitated narcotics dead drops occurring nationwide.

They report that citizens are now inadvertently discovering bags of drugs hidden in various urban locations, from children’s playgrounds to neighbors’ mailboxes.

Media sources have also asserted that Korean-language Telegram channels have transformed into a “crypto-powered narcotics department store” for young adults.

A brief search on Cryptonews.com for common South Korean narcotics slang on Telegram and X (Twitter) yielded hundreds of results.

16 indicted for smuggling illicit drugs from Cambodia to Korea https://t.co/UqPyJYqXWK

— The Korea Times (@koreatimescokr) July 2, 2024

Most results directed users to Telegram open chat rooms, where it appeared that drug dealers were offering “nationwide delivery” of the aforementioned narcotics.

Cryptonews.com also observed what seemed to be cryptocurrency wallet addresses, suggesting that these “dealers” preferred payments in Bitcoin and other cryptoassets.

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