A crypto “mining farm” in Gwangju turned out to be a entrance for money-spinning of a unique form: unlawful playing.
On Wednesday, South Korean police busted a makeshift gaming room that funneled over $95,000 (₩140 million) via unlicensed machines beneath the pretense of mining crypto.
Gwangsan Police Station introduced that they’re investigating a person recognized solely as “Mr. A” for violating the Recreation Business Promotion Act, per a neighborhood media report.
The suspect reportedly put in 50 modified gaming machines and two kiosks in an workplace in Gwangsan-gu earlier this month, operating the positioning beneath the guise of a digital foreign money change and mining operation.
Following the bust, authorities confiscated the gaming gear and are increasing their investigation to determine potential accomplices.
“Mr. A” allegedly modified a free cellular recreation, charging gamers $38 (₩50,000) per hour to play, and rewarded them with money primarily based on their scores.
“We are going to actively block unlawful gaming facilities from reopening or spreading even after being cracked down on,” Chief Jeong Gyeong-ho stated after the raid.
One other police official added, “We plan to repeatedly and strongly crack down on unlawful gaming rooms that threaten the individuals’s economic system.”
South Korea’s playing crackdown
South Korea has seen an increase in playing operations that use digital fronts, from crypto mining to faux funding platforms, to dodge detection.
These setups typically seem legit on the floor however exploit the regulatory blind spots between gaming, crypto, and monetary providers.
In November 2024, South Korean police arrested 12 operators and 191 gamblers related to a bootleg on-line betting community that dealt with greater than $7.77 million (₩108.4 billion) in wagers.
The group reportedly used encrypted chat apps and unique invite-only recruitment to keep away from regulation enforcement scrutiny.
And simply final week, authorities in South Gyeongsang arrested 18 people for operating unlawful on-line casinos from the Philippines, laundering over $169.5 million (₩250 billion).
The operation lured gamblers via mass texts and web cafés, an instance of how international and tactical these shadow networks have turn into.
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