South Korea Launches Worldwide AI Initiatives to Combat Drug Trafficking Enabled by Cryptocurrency

South Korea’s prosecution has broadened the scope of its Dark Web Special Investigation Team to tackle the increasing threat of drug-related crimes facilitated by cryptocurrencies, now placing greater emphasis on a wider range of online distribution platforms. What began as a unit focused solely on the dark web now includes new branches in Suwon and Daegu, signaling a nationwide crackdown on illegal activities. Authorities have pinpointed around 10,000 dark web sites and 3,000 Telegram channels as major investigative targets. The campaign also leverages artificial intelligence to track online drug deals and advertisements, representing a shift toward tech-enabled enforcement South Korea Revamps Anti-Crypto-powered Drug Crime Force [ 1 ].

Working with international online services and crypto exchanges has become a top priority, as local agencies often lack the authority to dismantle global drug networks. The prosecution intends to coordinate with companies such as Telegram, Google,

, and to analyze the flow of cryptoassets, and seeks to form collaborations with foreign-based exchanges to trace transactions linked to narcotics trafficking. This international approach aims to overcome the limitations of enforcing laws in countries where these platforms are headquartered South Korea Revamps Anti-Crypto-powered Drug Crime Force [ 1 ].

Authorities attribute the rise in crypto-driven drug offenses to the adaptability of criminal enterprises. Prosecutors observe that traffickers are turning to advanced tools to erase transaction records and are using third parties for smuggling and "dead drop" deliveries. Some ringleaders also avoid arrest by moving abroad before beginning their illegal operations. The anonymity and international nature of crypto payments further complicate law enforcement efforts South Korea Revamps Anti-Crypto-powered Drug Crime Force [ 1 ].

According to data from the Financial Intelligence Unit (FIU), over 36,684 suspicious

asset transactions were reported in South Korea by August 2025—a number exceeding the combined figures of the previous two years. Stablecoins, especially USDT, have played a significant role in unlawful money transfers, including a case involving the illicit movement of 57.1 billion won (about $41 million) across borders. These patterns highlight the urgent need for stronger regulations and advanced security technologies .

To better confront the growing complexity of crypto-related crimes, South Korea has launched a permanent Joint Investigation Unit (JIU) focused on Virtual Asset Crimes. Formed in 2025, the JIU has already brought charges against 74 people and detained 25 suspects to date. Operating under the Seoul Southern District Prosecutors’ Office, the unit comprises 34 prosecutors and 11 financial regulators. The JIU takes on high-profile cases, such as investigating the allegedly fraudulent Queenbee coin, and underscores the necessity for specialized knowledge in digital asset investigations .

The government’s response also targets younger demographics, with data showing that 60% of drug offenses in 2024 involved individuals under 40. Prosecutors believe this is due to younger offenders’ greater familiarity with online payments and cryptocurrencies, while older individuals tend to prefer face-to-face cash transactions. The unit’s mandate now also covers the illegal use of prescription drugs, showing a more comprehensive approach to tackling digital asset-enabled crimes South Korea Revamps Anti-Crypto-powered Drug Crime Force [ 1 ].

South Korea’s regulatory landscape is also changing to better address crypto-related offenses. The Virtual Asset User Protection Act, which took effect in July 2024, enforces stricter licensing and reporting obligations for exchanges. At the same time, authorities are considering aligning stablecoin policies with the U.S. GENIUS Act to ensure international regulatory consistency. These steps are intended to balance innovation with oversight, helping South Korea remain a leader in crypto adoption while minimizing risks linked to illegal activity .