South Korean Gangster Gets 8 Years for Losing ₱20,093,064 ($332,000) Bitcoin on Casino
A Seven Star Mob member accepted a money laundering offer via Telegram in February 2021 while on the run from other charges. Instead of converting Bitcoin to cash, he deposited the entire ₱20,093,064 ($332,000) stash into a casino site and lost it all.
Key Takeaway
South Korean courts are handing down multi-year sentences as crypto fraud cases triple in 2025.
A member of South Korea's Seven Star Mob accepted a money laundering offer via Telegram in February 2021 while on the run from other charges. Instead of converting Bitcoin to cash, he deposited the entire ₱20,093,064 ($332,000) stash into a casino site and lost it all.
The Busan District Court sentenced the mobster, described by prosecutors as an enforcer, to 8 years in prison for fraud, money laundering, and embezzlement. Presiding Judge Kim Hyun-soon said the court took into consideration that victims petitioned for harsh punishment.
The investment fraud organization he laundered money for defrauded around 150 victims of ₱387.34 million ($6.4 million) over roughly one year and two months. Judge Kim noted the number of victims and scale of damage were both large.
South Korean authorities have cracked down on crypto-related fraud as cases surge. Providers filed a record 36,684 suspicious transaction reports in the first eight months of 2025, exceeding the prior two years combined. Authorities prohibit unlicensed cryptocurrency exchanges, and police recently busted a group operating one that converted drug money to crypto and profited ₱19,306,287 ($319,000).
The Busan District Court has handled several crypto fraud cases in 2026, including a March 30 verdict sentencing a trio running a Ponzi scheme to prison terms between 2.5 and 4.5 years for embezzling $460,000.
This article was written based on reporting from Dlnews.
