South Korean Police Bust Crypto-Powered Drug Ring

The South Korean police have made 312 arrests in a massive drug raid targeting crypto-powered drug trafficking.

KBS reported that the Drug Crime Investigation Unit of the Seoul Metropolitan Police Agency made the arrests.

The suspects were charged with violating the Controlled Substances Act.

The police believe the suspects purchased or sold narcotics using dark web portals.

They are believed to have used “non-domestic” chat applications such as Telegram and transacted with Bitcoin (BTC) and other cryptocurrencies.

According to police, the group included at least six alleged “large-scale” drug traffickers.

This group included a man in his twenties who operated an “internet shopping mall.”

The suspects may have smuggled narcotics into the country from abroad or purchased them from South Korean smugglers.

Officers asserted the suspects were active between December 2020 and March 2023.

Police believe that the “internet shopping mall” operator was a key player and that he expanded his operations from selling conventional products to drug trading on the dark web.

Other defendants were charged with cultivating marijuana at home and selling it online or to “neighbors.”

Police reported that only one of the six alleged “major” drug dealers had prior convictions. According to the police, the majority of drug traffickers used “dead drop” distribution and purchase methods.

Buyers allegedly paid in advance with BTC and altcoins, while sellers concealed drug-filled bags in public areas, such as apartment entrances.

After leaving the area, the dealers contacted the buyers via Telegram to let them know where to collect the drugs.

However, it appears that a few of the suspects were not actively involved in drug trading involving cryptocurrencies.

This included a 40-year-old office worker who allegedly approached a licensed hemp plantation operator and requested cannabis to cure his sick child.

The plantation owner believed the office worker’s tale and felt pity for him.

Police discovered later that the office worker had fabricated the tale and had been smoking the donated cannabis “for free.”

A police spokesperson stated:

“As drug distribution spreads, the line between drug dealers and buyers is becoming blurry.”

Police forces have made significant investments in blockchain analytics software that they believe will assist them in identifying crypto-powered drug trade networks.

Last year, the National Police Agency’s drugs task force charged 533 individuals using BTC or alternative cryptocurrencies to purchase or distribute narcotics.

However, crypto-powered narcotic crime continues to increase.

A 14-year-old girl was detained in March on suspicion of using cryptocurrency to purchase methamphetamine (crystal meth).

In April, teens were arrested for using cryptocurrency to trade MDMA (ecstasy) and ketamine.