Crypto mining front line behind the bust gambling nest of South Korean police

Gwangju’s code “mining farms” turns out to be a front line to pay another kind of gold: illegal gambling.

On Wednesday, South Korean police pretended to be code mining and broke a makeshift game room that had poured over $95,000 (140 million) through unlicensed machines.

Gwansan Police Station has announced that it is investigating a man who was identified solely as “Mr. A” for violating the gaming industry promotional law, according to a local media report.

The suspect reportedly installed 50 modified gaming machines and two kiosks in Gwangsan-Gu’s office earlier this month, running the site under the guise of crypto exchanges and mining operations.

Following Bust, authorities have confiscated gaming equipment and expanded investigations to identify accomplices.

“Mr. A” changed the free mobile game, charging players $38 (₩50,000) per hour, and rewarding them with cash based on their scores.

“We will actively block illegal arcades from reopening or spreading even if they have cracks,” Chief Kyung-ho said after the attack.

Another police officer said, “We plan to continue and strongly crack down on illegal game rooms that threaten people’s economy.”

Korean Gambling crackdown

South Korea has seen an increase in gambling businesses using the digital side, from crypto mining to fake investment platforms to detect avoidance.

These setups often seem justified on the surface, but take advantage of the regulatory blind spots between games, crypto and financial services.

In November 2024, South Korean police arrested 12 operators and 191 gamblers connected to an illegal online betting network that had processed more than $7.77 million (108.41 billion) in bets.

The group reportedly used encrypted chat apps and exclusive invitation-only recruitment to avoid law enforcement scrutiny.

And last week, South Gion Sun authorities arrested 18 people and washed more than $169.5 million (2500 billion) for running an illegal online casino from the Philippines.

This operation invited gamblers through a ton of text and an internet cafe. This is an example of how these shadow networks became global and tactical.