Police: "Coin money laundering mostly occurs in accounts with limits lifted"

Police: "Coin money laundering mostly occurs in accounts with limits lifted"

Analysis results provided to exchanges... FDS (Fraud Detection System) detection rules proposed

It was found that most money laundering using virtual assets in Korea is carried out through bank accounts linked to KRW exchanges, specifically accounts where the deposit limit has been lifted.

According to data submitted to the National Police Agency by Rep. Park Jeong-hyun of the Democratic Party of Korea on the 28th, the police analyzed KRW deposit and withdrawal transaction details from banks linked to the five major virtual asset exchanges (Upbit, Bithumb, Coinone, Korbit, Gopax) to produce these results.

KRW deposit accounts at banks linked to domestic virtual asset exchanges can only deposit a maximum of 5 million won per day before the limit is lifted, but if certain conditions are met and the limit is lifted, up to 500 million won can be deposited per day.

It was found that some of these accounts with lifted limits are used for money laundering by depositing KRW into domestic exchanges, purchasing virtual assets, and then transferring them to overseas exchanges and shell wallet addresses.

In particular, it was reported that funds from financial fraud deposited into domestic exchanges were often laundered by purchasing a single, highly liquid asset with low transfer fees at market price.

Considering the increasing frequency of criminal organizations laundering money using virtual assets, the police provided these analysis data to the five major virtual asset exchanges last month.

Furthermore, to prevent money laundering, based on the analysis data, they created and proposed FDS (Fraud Detection System) detection rules that can be used by banks linked to virtual asset exchanges and by the exchanges themselves.

Even after providing this data, the police plan to verify the effectiveness of the detection rules through additional data analysis, identify new patterns, and share them with financial institutions and virtual asset exchanges.