A Gen Z drug trafficker has been sentenced to 20 years in prison after South Korean authorities uncovered a sophisticated narcotics operation that relied heavily on cryptocurrency for payments and money laundering.
Court Delivers Harsh Sentence
The sentencing was handed down at the Ulsan District Court, where prosecutors detailed how the unnamed kingpin orchestrated a $4 million drug distribution network. In addition to the prison term, the court imposed a $4.2 million fine, reflecting the scale and profitability of the operation.
He described the crimes as “highly antisocial”, emphasizing the need for extremely heavy punishment.
Telegram Becomes a ‘Narcotics Department Store’
Investigators revealed that Korean-language Telegram channels have effectively become “narcotics department stores” for young users. Customers paid in Bitcoin and other cryptocurrencies, allowing dealers to operate with speed and relative anonymity.
The court heard that the kingpin began selling drugs online in March 2020, gradually recruiting a network of accomplices to manage multiple Telegram sales channels. The platforms advertised and sold synthetic marijuana, marijuana, LSD, and methamphetamine, much of it smuggled in from Vietnam.
Crypto Fuels Scale and Speed
Cryptocurrency played a central role in scaling the operation. The gang laundered proceeds through crypto wallets and paid distributors a 10% commission on successful deliveries. Prosecutors said the model reduced friction, eliminated cash handling, and made transactions harder to trace in real time.
To fulfill orders, the group relied on a nationwide network of small-scale dealers who carried out “dead drops”, hiding drugs in public locations and sending pickup instructions digitally. Between March 2022 and May 2023 alone, authorities estimate the gang completed nearly 12,000 deliveries, distributing more than 7,000 kilograms of methamphetamine pills.
A Blueprint for Other Criminals
The court warned that the kingpin’s approach had become a template for other drug dealers.
Three of the kingpin’s close associates were also convicted, receiving sentences ranging from 30 months to three years for drug distribution and money laundering offenses.
Telegram Under Growing Scrutiny
The case has reignited concerns about Telegram’s role in illicit activity. A year ago, South Korean authorities launched an investigation into the messaging app but faced resistance due to Telegram’s reluctance to share user data with law enforcement.
So far, the Korea Communications Standards Commission (KCSC) has added Telegram to its list of foreign platform partners, allowing regulators to request the removal of illegal content, including narcotics-related material.
Crypto Rules Shift as Criminals Adapt
Ironically, the case comes as South Korea loosens certain crypto restrictions. The Financial Services Commission (FSC) recently lifted its ban on corporate crypto investments, a move previously justified by money laundering concerns. Final regulations are expected in early 2026.
Under draft rules, companies may invest up to 5% of shareholder equity in top cryptocurrencies, excluding stablecoins for now. According to Chainalysis, stablecoins accounted for 84% of illicit on-chain transaction volume in 2025, highlighting shifting criminal preferences.
Experts now warn that criminal groups are increasingly turning away from crypto, favoring casino junkets and chip-cash cycles instead. Recent reports point to Chinese nationals laundering scam proceeds through casinos in Jeju and other regions, underscoring how enforcement pressure simply pushes illicit finance into new channels.
