Rising Drug Smuggling in South Korea Linked to Cryptocurrency and Telegram

South Korea is experiencing a concerning rise in drug smuggling, with authorities attributing this increase to the growing use of cryptocurrency and encrypted messaging apps like Telegram. In 2023, the South Korean Customs Service seized 769 kilograms of illegal drugs, marking an 18% increase from the 624 kilograms confiscated in 2022. This uptick in smuggling is believed to be driven by the high domestic drug prices compared to other countries and the anonymity provided by digital currencies such as Bitcoin and various altcoins.

Surge in Drug Smuggling Linked to Rise in Virtual Currency Transactions

According to the South Korean Customs Service, the surge in drug smuggling is closely tied to the proliferation of non-face-to-face transactions facilitated by virtual currencies. The use of these digital currencies has made it easier for smugglers to conduct transactions without direct contact, thereby complicating efforts by authorities to track and intercept illegal activities. The service reported that 327 kilograms of drugs were smuggled through international mail in 2023, while 275 kilograms were concealed in express cargo, and 148 kilograms were found on travelers entering the country. The drugs seized predominantly included methamphetamines, ketamine, marijuana, and cocaine.

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Cryptocurrency and Telegram as Tools for Dealers

Dealers are increasingly turning to encrypted apps like Telegram to conduct their illicit business, often advertising drugs on social media and accepting payments in cryptocurrencies like Bitcoin. This method allows them to maintain a low profile, as they can receive payments without revealing their identities. After payment, dealers typically leave the drugs in public locations for buyers to retrieve, a tactic that further complicates law enforcement efforts to track these transactions.

In the first half of 2024 alone, South Korean authorities have already seized 377 kilograms of drugs, nearly half of the total amount confiscated in the previous year. This trend has prompted lawmakers to call for stronger measures to combat the escalating drug problem. Despite the efforts of law enforcement, the rise in smuggling linked to cryptocurrencies and encrypted communication platforms continues to challenge their capabilities.

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Telegram Under Scrutiny for Drug-Related Activities and Lack of Moderation

The involvement of Telegram in facilitating drug deals has drawn additional scrutiny, particularly following the recent arrest of Telegram CEO Pavel Durov at Le Bourget Airport near Paris. The ongoing investigation into Telegram focuses on the platform's lack of moderation, which law enforcement agencies argue has allowed criminal activities to flourish unchecked. The case underscores the broader issues surrounding the use of encrypted communication platforms in illegal activities, raising questions about the need for more stringent regulations.