Seoul Police Dismantle Major Cybercrime Network Involving Cryptocurrency

Darius Baruo Sep 09, 2025 08:49

The Seoul Metropolitan Police Agency has dismantled a sophisticated international hacking operation, recovering part of the 39 billion won stolen using advanced blockchain intelligence tools.

The Seoul Metropolitan Police Agency (SMPA) has successfully dismantled a highly sophisticated international hacking operation, according to Chainalysis. This operation involved the theft of 39 billion won, equivalent to approximately $30 million, from 258 victims, including high-profile executives. The investigation, which lasted two years, revealed that the criminals used advanced techniques to obscure their tracks, relying on cryptocurrency to facilitate their actions.

The Case: A Complex Cybercriminal Network

The investigation began in September 2023 when the SMPA’s Cyber Investigation Team received a complaint about unauthorized account access from a domestic CEO. By December, similar reports had surged, indicating a pattern of illicit phone account usage to siphon funds from victims' accounts. It became evident that the criminal network targeted South Korea’s affluent individuals by hacking personal information and impersonating agency employees to gather further data for subsequent thefts.

Kim Kyung-hwan, head of the SMPA’s Cyber Crime Investigation Team, remarked on the unprecedented nature of the criminals' methods, highlighting the sophistication of their operations.

Blockchain Intelligence: Unraveling Cryptocurrency Transactions

The criminals attempted to obscure their financial transactions by converting stolen funds into cryptocurrency. However, the SMPA leveraged Chainalysis’ blockchain intelligence tools to trace these digital transactions. By utilizing the Chainalysis Reactor platform, investigators could visualize and track the flow of illicit funds across the blockchain, uncovering hidden connections and mapping the relationships between transactions, addresses, and entities.

The investigation extended beyond South Korea, with the group’s leader, known as “Mr. A,” operating mainly from China and Thailand. This necessitated international collaboration, including assistance from Interpol. Ultimately, Mr. A was apprehended in Thailand and extradited to South Korea after 106 days of surveillance and investigation.

Implications for Cryptocurrency and Crime Investigation

This case underscores the critical role of blockchain intelligence in modern financial crime investigations. Chainalysis’ tools enabled authorities to recover 14 billion won of the stolen funds, demonstrating the importance of quality data in asset recovery efforts. The success of this investigation sends a strong message that cryptocurrency is not a safe haven for criminal activity. As Superintendent Kim Jae-hyun of the National Police Agency’s Interpol Cooperation Unit stated, fugitives who believe they can evade capture will eventually be caught.

As cryptocurrency usage grows globally, criminal activities involving virtual assets are also evolving. However, advancements in blockchain analytics continue to equip law enforcement agencies with the tools necessary to combat these emerging threats. Through collaboration with global law enforcement agencies, such as the SMPA, Chainalysis is playing a pivotal role in creating a safer cryptocurrency ecosystem.

For further details, visit the Chainalysis blog.

Image source: Shutterstock

• cybercrime
• blockchain
• cryptocurrency