South Korean Man’s Bid to Cut Sentence Backfires, Resulting in Longer Term for Laundering $68,000 in Crypto

What began as an attempt to walk free ended with prison doors closing.

A South Korean man in his 30s, who helped launder crime proceeds through cryptocurrency for a voice phishing gang, has been sent to jail after an appeals court tore up a suspended sentence and imposed a four-year prison term.

The ruling sharply escalated his punishment and delivered a warning about how courts now view organised crypto-enabled fraud.

Appeal Turns Leniency Into Prison Time

The defendant was first sentenced in 2024 by a district court, which handed down two years and six months in prison but suspended the sentence for four years, alongside a four-year probation period.

Under that arrangement, he avoided jail unless he committed another offence and was required to report regularly to a probation officer.

Believing the punishment could be reduced further, the man appealed to the Suwon High Court.

Instead, the appeal backfired.

The court revoked the suspension entirely and ordered him to serve four years behind bars.

Judges said they could not accept the earlier court’s leniency, concluding that the original sentence failed to reflect the seriousness of his role.

Not A Minor Player, But A Manager

The appellate court rejected arguments that the defendant was a low-level courier.

Instead, it described him as a middle manager who exercised real control over the criminal operation.

The judge said,

“The defendant referred to himself as ‘a person in charge.’ He received daily reports on the ring’s operations and played a key role in the voice phishing crimes. He gave orders to other members of the organisation.”

Even though the amount directly linked to him was smaller than the group’s total haul, the court ruled that his level of involvement demanded a tougher sentence.

How The Crypto Laundering Worked

Prosecutors told the court that the man worked closely with a South Korean voice phishing ring that targeted victims by impersonating public prosecutors.

The National Police Agency has launched 24/7 operations at its integrated response center in Seoul to field incoming voice phishing reports.

Victims were warned that their identities had been stolen and used to open fake bank accounts, putting their assets at risk.

Under pressure, victims were instructed to withdraw their savings and transfer the money to so-called “safe” accounts.

These accounts were controlled by the gang and emptied almost immediately.

The defendant oversaw the collection of these funds in South Korea, converted roughly 100 million won, about $68,000, into cryptocurrency, and arranged for it to be sent to an address in China through another member of the group.

Five victims were confirmed in the case.

Court Unmoved By Compensation Offer

During the appeal, the defence argued that the defendant had agreed to compensate victims for their losses.

The court dismissed this as insufficient, noting his criminal history.

The man had previously been punished for involvement in voice phishing-related crimes, a factor that weighed heavily in the judges’ decision.

The judge said,

“Even though he was fully aware of the illegality and social harm of his actions, he reoffended. As such, there is a high possibility he will commit further crimes of this nature.”

Severe Punishment Seen As Inevitable

The court said it had little choice but to impose a harsher sentence that matched the defendant’s role within the organisation.

Judges pointed to evidence showing he managed proceeds, directed other members, and remained deeply involved in the scam’s day-to-day operations.

While the man retains the right to appeal to South Korea’s Supreme Court, legal experts note the risk remains high.

If the top court rejects his appeal, it also has the authority to extend his sentence further, a gamble that has already cost him his freedom once.

Korea Launches Massive Crackdown as Phishing Losses Soar

Facing a record-breaking surge in phishing crimes that cost victims nearly 800 billion won ($575 million) in just seven months, Korean authorities launched an intensive five-month crackdown in September to combat increasingly sophisticated scams.

With financial damages up 95% year-on-year due to evolving tactics like investment fraud, romance scams, and smishing, police have mobilized over 400 officers to dismantle both criminal rings and their support networks, offering rewards of up to 500 million won for information.