49 people were arrested in South Korea during a police raid on a suspected crypto-powered drugs trading gang, with nearly $1.5 million worth of narcotics being smuggled and sold to crypto-paying buyers. The gang was believed to be operating in partnership with a leader based in the Philippines, smuggling drugs such as methamphetamine and synthetic marijuana into South Korea. The gang used various methods to evade detection, including concealing drugs in women’s sanitary products and using Telegram channels for communication with buyers.
The gang arranged “dead-drop” deliveries of drugs in residential areas chosen by buyers, hiding drugs in electric terminal boxes and fire hydrants. Buyers would receive photographs and GPS location data to locate the hidden drugs. Police began tracking the gang in August the previous year, resulting in the arrest of suspected dealers, smugglers, and users in both South Korea and the Philippines. In addition to the arrests, police confiscated drugs worth 4.8kg, including 1.2kg of methamphetamine, and nearly $41,000 worth of fiat currency.
Police were able to track the gang by analyzing Telegram messages and footage from over 1,500 CCTV units. Collaboration with law enforcement agencies in the Philippines, Interpol, and the South Korean National Intelligence Service was crucial in making the arrests. The head of the Busan Police Drug Crime Investigation Unit stated that they would continue investigating internet drug transactions and intensifying crackdowns on drug crimes. South Korean President Yoon Suk-yeol declared an “all-out war” on crypto-powered drug trafficking, emphasizing the need to mobilize all government capabilities in the fight against drugs.
In Seoul, 452 arrests were made on crypto- and drug-related charges between June 2022 and December 2023. Additionally, a report highlighted that some of South Korea’s major cities are grappling with the presence of dead-dropped drugs bought through crypto deals. The prevalence of drug trafficking involving cryptocurrencies among teens in the country has led to a crackdown on such activities. South Korea has seen an increase in drug use, with three in 100 adults admitting to having tried illegal drugs such as marijuana, cocaine, and heroin at least once in their lives. The government has been actively targeting crypto-powered drug trafficking to combat the rising issue of drug crimes in the country.
