Two Vietnamese individuals have been sentenced to prison in South Korea for their involvement in a cross-border money laundering operation that utilized Tether (USDT).
The pair exploited the USD-pegged stablecoin to transfer funds derived from voice phishing scams to overseas accounts.
USDT Money Laundering Operation: Defendants Sentenced to Two Years
According to the South Korean media source Financial News, the Seoul Eastern District Court imposed a two-year prison term on each defendant on June 22, under the direction of Presiding Judge Lee Jeong-hyeong.
The individuals, both aged 23 and identified by their last names as Duong, a college student, and Pham, an unemployed resident, were convicted of breaching the Special Act on Prevention of Telecommunications and Financial Fraud and Refund of Damages.
Prosecutors revealed that Duong and Pham connected with a voice phishing ring in October of the previous year through an open chat room on Telegram. The operators of the scheme instructed them that they would handle proceeds from the scams in Korean won.
Following these instructions, the duo converted the received funds into USDT and transferred this cryptocurrency to a wallet managed by a member of the voice phishing gang based in Vietnam.
In exchange for their services, Duong and Pham were paid commissions ranging from 50,000 won ($36.44) to 100,000 won ($72.88) for each 10 million won ($7,288) worth of USDT they dispatched.
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— The Korea JoongAng Daily (@JoongAngDaily) June 22, 2025
‘Hash Sentence Inevitable,’ Judge Addresses Actions of Defendants
The court’s proceedings revealed that the voice phishing operation successfully defrauded numerous victims in South Korea out of substantial amounts of money.
Employees of the ring impersonated various professionals, including delivery personnel for credit cards, insurance agents, tax service workers, and even prosecutors, often claiming they were assessing the safety of victims’ bank accounts.
The ring employed multiple money laundering strategies, enlisting additional accomplices from Uzbekistan and Vietnam.
Although the judge noted the lack of prior offenses committed by the defendants, he emphasized the necessity of a severe punishment. Judge Lee stated, “Even if the defendants did not orchestrate the crime, they must be severely punished. They played an essential role in the crime, acting as intermediaries. They have also not made any special efforts to help compensate the victims for the damages incurred.”
Crimes associated with USDT are on the rise in South Korea, driven by the cryptocurrency’s growing popularity. There has been a noticeable increase in fraudulent USDT-themed transactions and related thefts this year.
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