Two army non-commissioned officers who did not report virtual asset exchange operations were sentenced to imprisonment for drug trafficking.

Two Army sergeants major who operated an unreported virtual asset exchange, converting funds used for drug purchases into virtual assets and transferring them to drug traffickers, were sentenced to prison by the court.

On the 26th, the Criminal Division 4 of Changwon District Court stated that two individuals, including a man in his 30s identified as A, who were transferred for trial on charges of violating laws related to the management of drug categories, were each sentenced to two years in prison, and ordered the joint confiscation of 54.69 million won.

Investigation results showed that during their service at the Army Special Warfare Command, they met co-conspirators and operated an unreported virtual asset exchange on Telegram from 2023 to 2024. The prosecution argued that they exchanged a total of 54.69 million won worth of drug purchase funds into virtual assets 90 times and transferred them to drug traffickers, aiding drug transactions. The investigation focused not just on the exchange activity itself, but on how they utilized the relatively strong anonymity of virtual asset trading structures to connect the flow of drug transaction funds.

The judiciary particularly regarded the fact that the defendant directed and supervised the organization members and led the crime as a significant factor. The court believed that, given the numerous criminal acts, the substantial scale of transactions, and the fact that the defendant, a military personnel, systematically participated in the crime alongside co-conspirators, the nature of the crime was severe. The confiscation of 54.69 million won was a measure to recover an amount equivalent to the funds used in the crime, indicating that illegal transaction flows would not be tolerated.

This ruling demonstrates that if virtual assets are abused as a means of settlement and transfer for illegal transactions, courts will not see it as merely auxiliary but as a core element supporting drug circulation, warranting strict punishment. This trend may lead to further investigations and penalties combining unreported virtual asset businesses with drug crimes in the future.