Thailand Busts $15M Crypto Scam Targeting Koreans

Thai Police Break Up $15 Million Crypto Fraud Network

Thai police have dismantled a cryptocurrency fraud ring worth $15 million that victimized more than 870 South Koreans. The criminal organization, known as “Lungo Company,” was uncovered following a joint investigation between the Seoul Metropolitan Police Economic Crime Investigation Division and Thai authorities. According to official reports, 25 suspects were arrested, including the ringleader and eight key members, who are currently in custody awaiting extradition to South Korea. Officials described the case as a textbook example of “multi-layered laundering,” far more sophisticated than previous incidents.

Multiple Fraud Schemes Combined

Unlike traditional crime groups that typically rely on a single method, “Lungo Company” deployed multiple tactics to maximize their reach. Victims were deceived through fake online romance schemes, bogus lottery compensation programs, and worthless cryptocurrencies marketed as “data breach compensation.” Once funds were deposited, they were siphoned off through fraudulent platforms created for the scam.

Chain-Hopping And OTC Laundering

One of the group’s main strategies was chain-hopping, a process of rapidly moving assets across multiple blockchains to obscure transaction trails. This tactic made tracking stolen funds extremely difficult for investigators. In addition, the group exploited unregulated OTC broker networks in Thailand’s tourist hubs such as Pattaya to convert crypto into cash, bypassing traditional banking oversight.

A Sophisticated Laundering Network

Experts revealed that the group also operated so-called “parasite exchanges”—shell companies that used forged documents to open accounts at major exchanges, then offered custom interfaces to clients in order to conceal any link to regulated platforms. These underground operations processed far larger volumes of illicit transactions than their mainstream hosts. The network also employed crypto-funded prepaid cards for ATM withdrawals, casino laundering to disguise dirty money as “legitimate winnings,” and thousands of micro-transactions designed to remain below detection thresholds.

Rising Crypto Crime In Asia

Experts warn that cross-chain crime has tripled in the past two years, fueled by the rise of decentralized exchanges, no-KYC swap services, and unregulated OTC markets. Asia is now emerging as a major hotspot for crypto-related scams and laundering activities. Just last month, South Korean authorities dismantled an international hacking group that stole more than $28.1 million from wealthy individuals, including celebrities and top business executives.

Conclusion

The takedown of “Lungo Company” underscores the increasing sophistication of crypto-related crime in the region. By combining romance scams with advanced chain-hopping tactics, fraudsters are outpacing regulators’ ability to respond. Authorities stress the urgent need for stronger international cooperation to effectively counter these multi-layered schemes.

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