South Korea refers four to prosecutors over $204M crypto payments for illegal car exports to Russia, Belarus

South Korean customs authorities have referred four individuals to prosecutors for allegedly orchestrating the illegal export of over 1,000 used cars to Russia and Belarus, with payments settled in cryptocurrency to circumvent international sanctions. The Incheon Main Customs office confirmed the group, including a foreign national in his 40s believed to be the ringleader, faces charges under the Customs Act and the Foreign Trade Act.

How the scheme operated

According to the customs investigation, the group exported 1,024 used cars valued at approximately 50.7 billion won (around $36 million) to Russia and Belarus, both subject to comprehensive international sanctions following Russia’s invasion of Ukraine. The vehicles were shipped despite export restrictions imposed by South Korea in alignment with global sanctions.

To receive payment without triggering financial oversight, the group turned to cryptocurrency, specifically Tether (USDT), a stablecoin pegged to the U.S. dollar. Normal bank remittances had become impossible due to financial sanctions, so the group received 279.6 billion won (approximately $204 million) in crypto payments—a figure significantly higher than the declared car value, suggesting possible over-invoicing or additional undisclosed transactions.