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Reports say cases of criminal organizations using virtual assets (cryptocurrencies) to hide and launder criminal proceeds have surged. On the 25th, Wi Seong-gon, a member of the National Assembly's Public Administration and Security Committee, said that according to data submitted by the National Police Agency, the virtual assets seized and forfeited by the police through September this year amounted to 134.4 billion won. This is an increase of 1519% compared to 2023 (8.3 billion won). Virtual assets' share of this year's total preserved criminal proceeds of 529.6 billion won also exceeded 25%, marking a significant expansion. In particular, investigations found that criminal organizations laundered money by converting victim funds collected in straw bank accounts into virtual assets and then transferring them to overseas organizations using electronic wallets. Organizations operating in overseas fraud hubs such as Sihanoukville and Phnom Penh were also found to have used the same method. Recently, methods using unlicensed private exchanges or virtual asset ATMs have emerged, making tracking more difficult, analysts say. In addition, the police operate 148-member response teams dedicated to seizure and forfeiture before indictment at provincial police agencies nationwide to trace the flow of funds. However, because seized virtual assets cannot be sold until court rulings are finalized, delays in recovering damages due to price fluctuations have been pointed out as a structural problem. There have also been continued cases where recovery procedures are suspended due to noncooperation from overseas exchanges.

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