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Cryptocurrency transfers between Korea, Cambodia skyrocketed in 2024, investigation finds

Published: 27 Oct. 2025, 13:08 Updated: 27 Oct. 2025, 14:35

A building suspected to be part of a criminal compound is seen in Sihanoukville, Cambodia, on Oct. 14. [YONHAP]

The flow of U.S. dollar–pegged stablecoins between major Korean cryptocurrency exchanges and a Cambodia-based exchange accused of money laundering surged nearly 1,400-fold in 2024, raising concerns that local platforms may have been exploited by Cambodian criminal networks for illegal fund transfers.

The total volume of cryptocurrency exchanged between Korea’s five major exchanges — Upbit, Bithumb, Coinone, Korbit and Gopax — and Huione Guarantee, a Cambodian exchange, reached 12.8 billion won ($9.2 million) in 2024, according to data submitted by the Financial Supervisory Service (FSS) to conservative People Power Party Rep. Lee Yang-soo, a member of the National Assembly’s Political Affairs Committee.

That marks a sharp rise from just 9.23 million won the previous year. In 2023, transfers from Cambodia to Korea amounted to 8.95 million won, while outflows from Korea totaled 280,000 won. In 2024, inflows soared to 10.5 billion won and outflows to 2.3 billion won.

Huione Group, the parent company of Huione Guarantee, has been designated by the U.S. and British governments as a transnational criminal organization involved in laundering cryptocurrency obtained through fraud and theft. Its exchange platform is under suspicion of facilitating high-risk fund movements.

Among Korean exchanges, Bithumb accounted for the vast majority of the transactions, with its trading volume from Huione Guarantee skyrocketing from 9.22 million won in 2023 to 12.4 billion won in 2024. Upbit, which had no such transactions in 2023, saw inflows and outflows reach 366 million won in 2024. Coinone recorded a modest increase from 2,500 won to 1.2 million won, while Korbit saw 11.9 million won in transfers, and Gopax had none.

According to Cambodian media, this compound on the outskirts of Phnom Penh was used to conduct online scams. Approximately 48 people, including 33 Korean nationals, were arrested at this site by local authorities on Sept. 15 for their involvement in criminal operations. [NEWS1]

The flow of funds between Korean exchanges and Huione Guarantee continued into 2025. From January to Oct. 20, transactions totaled 3.1 billion won, lower than in 2024 but still significantly higher than in 2023.

By exchange, Bithumb accounted for 2.18 billion won, followed by Upbit with 523 million won, Korbit with 443 million won and Coinone with 280,000 won. Industry sources said Upbit suspended transfers with Huione Guarantee in March, while Bithumb, Coinone and Korbit followed suit in May.

In addition, Bithumb was found to have received 680,000 won from Byex, an exchange affiliated with Cambodia’s Prince Group, which has also been sanctioned internationally for alleged money laundering. Bithumb reportedly blocked all transactions with Byex on Oct. 22.

A Prince Bank building in Cambodia seen on Oct. 19 [YONHAP]

Nearly all transfers involved Tether (USDT), a U.S. dollar–linked stablecoin. Of the 12.8 billion won transferred between Korea and Cambodia in 2024, 12.8 billion won amounting up to 99.9 percent was in USDT. The cryptocurrency’s low volatility and liquidity make it a convenient vehicle for cross-border transactions.

“The financial regulators must closely examine the sharp increase in stablecoin transfers between domestic and Cambodian exchanges and identify whether criminal groups are using them for money laundering or illegal remittances,” said Rep. Lee, urging financial authorities to take the situation seriously.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM JI-HYE [[email protected]]