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South Korean Court Sentences Two Individuals Involved in Cross-border USDT Money Laundering Operation
A South Korean court has sentenced two Vietnamese individuals to prison for utilizing Tether (USDT) in a cross-border money laundering operation.
The pair employed the USD-pegged stablecoin to transfer funds obtained from voice phishing scams abroad.
USDT Money Laundering Operation: Defendants Sentenced to Two Years
The South Korean news outlet Financial News reported that the Criminal Division of the Seoul Eastern District Court, led by Presiding Judge Lee Jeong-hyeong, imposed a two-year prison term on each defendant on June 22.
The Seoul Eastern District Court, in Seoul, South Korea. (Source: Pectus Solentis [CC BY-SA 4.0])
The individuals were named as a college student with the surname Duong (23) and an unemployed person with the surname Pham (also 23).
The court determined that both were guilty of breaching the Special Act on Prevention of Telecommunications and Financial Fraud and Refund of Damages.
Prosecutors revealed that Duong and Pham initially connected with the voice phishing scam group in October of the previous year.
The group recruited them through an open chat room on Telegram. The organizers informed Duong and Pham that they would be receiving the proceeds from voice phishing scams in Korean won.
The pair was then directed to convert this money into USDT, which they subsequently transferred to a crypto wallet belonging to a member of the voice phishing organization residing in Vietnam.
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The group compensated both Duong and Pham with commission fees ranging from 50,000 won ($36.44) to 100,000 won ($72.88) for every 10 million won ($7,288) worth of USDT they sent.
In a bold play to secure Korea’s position among the global AI elite, President Lee Jae Myung kicked off his term with a visit to the launch site of a mega-scale AI data center. #AIdatacenter https://t.co/gGHvfjNBvw
— The Korea JoongAng Daily (@JoongAngDaily) June 22, 2025
‘Hash Sentence Inevitable,’ Judge Clarifies
The court was informed that the voice phishing group successfully deceived victims in South Korea out of thousands of dollars through cash transfers.
Employees of the group posed as credit card delivery personnel, insurance company representatives, National Tax Service officials, and even public prosecutors.
They typically informed potential victims that they were calling to verify the security of their bank accounts.
The group employed various money laundering methods, involving accomplices from Uzbekistan and Vietnam.
The judge noted that the court did not impose a more severe sentence since neither defendant had prior criminal records in South Korea. However, Lee remarked:
“Even if the defendants did not orchestrate the crime, they must be severely punished. They played an essential role in the crime, acting as intermediaries. They have also not made any special efforts to help compensate the victims for the damages incurred.”
Crimes involving USDT are increasing in South Korea, as the stablecoin’s popularity continues to rise in the country. This year has witnessed a significant uptick in fraudulent USDT-themed over-the-counter transactions and associated thefts.
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