- South Korean authorities have dismantled an illicit gambling operation masquerading as a cryptocurrency mining farm
- The establishment processed over $95,000 through unauthorized gaming machines
- A primary suspect is under investigation for breaching the Game Industry Promotion Act
South Korean police have exposed an illegal gambling den operating under the facade of a cryptocurrency mining facility. The operation reportedly funneled more than $95,000 through unlicensed gaming machines. The police’s prime suspect, identified only as “Mr. A,” has been accused of operating an illegal game room by installing 50 game machines.
Players Charged $38 Per Hour
The Gwangsan police initiated an investigation into a suspicious establishment in Gwangsan-gu where Mr. A had installed the modified gaming machines and two kiosks within an office space, presenting the site as a cryptocurrency exchange and mining operation. However, the setup was an attempt to conceal illicit gambling activities, with Mr. A charging players approximately $38 per hour to participate.
Players received cash rewards based on their scores, effectively transforming the gaming machines into unlicensed gambling devices. Over time, the operation processed transactions exceeding $95,000, highlighting the scale of the illicit activities.
Reflective of Broader Trend
Following the raid, authorities confiscated all gaming equipment and are expanding their investigation to identify potential accomplices. This incident reflects a broader trend in South Korea, where illicit gambling operations increasingly adopt digital fronts, such as cryptocurrency mining or virtual exchanges, to evade detection.
These operations exploit regulatory gaps between gaming, cryptocurrency, and financial services, posing challenges for law enforcement agencies. The South Korean authorities’ proactive measures aim to dismantle these networks and protect the economy from such clandestine activities.
