South Korean ‘Crypto Drug Dealer’ Sentenced to 7-Year Jail Term
A drug dealer in South Korea has been handed a seven-year prison sentence by a local court for selling narcotics to customers who paid with cryptocurrency. The individual, referred to as “A” by the media, has also been ordered to pay a fine of over $9,000 and attend a 40-hour narcotics treatment program. Although A denied selling drugs, they admitted to using narcotics themselves, including ketamine.
Prosecutors alleged that A employed “dead drop” techniques to distribute drugs, regularly hiding bags of narcotics in water meters and public flower beds. A requested payment in virtual currency to avoid leaving any trace for investigators. The prosecution also claimed that A conspired with another drug dealer to sell narcotics in small quantities in Seoul.
South Korean authorities have been actively combating crypto-powered drug crime, which President Moon Jae-in referred to as a “war” against youth drug usage. Police have discovered networks of crypto-holding teenagers and young adults who use darkweb portals to find drug dealers. However, reports have emerged of South Korean drug dealers openly advertising their services on Twitter and directing potential customers to communicate via Telegram.
After receiving payment in cryptocurrency, dealers perform dead drops in the customers’ chosen districts. They then provide buyers with photographs of the locations where the drugs are hidden and instructions for safe retrieval. Some drug dealers claim to deliver substances like crystal meth, marijuana, and MDMA (ecstasy) nationwide.
Last year, the court sentenced one of A’s accomplices in Busan to two years and six months in prison, along with a fine of approximately $9,000. This individual distributed drugs using dead drops and eventually created their own Telegram channel to sell drugs for cryptocurrency. The court showed leniency in sentencing, considering the individual’s remorse and immediate confession to the police following arrest.
South Korea continues to grapple with the rise of crypto-powered drug crime, with authorities striving to combat the issue and bring offenders to justice.