South Korea Cracks Down on Crypto Drug Networks

• South Korea to develop a system for tracking crypto-linked drug trafficking.
• The Ministry of Science and ICT will equip the police with advanced analysis tools to fight modern drug trafficking.
• The use of crypto for illicit activities has grown steadily in the past few years to hit $158 billion in 2025.

South Korea has embarked on a massive crackdown against drug trafficking linked to cryptocurrencies and the dark net. The country’s Ministry of Science and ICT, in collaboration with the National Police Agency, announced on Wednesday, February 4, 2026, that a system will be developed to expedite investigations into drug trafficking networks using anonymous tools.

South Korea to Fight Drug Crime Linked to Crypto and Darkweb

According to the two South Korean government agencies, a new research and development project will spend 13.2 billion won, around $9.1 million, to develop an integrated drug trafficking investigation system. 

Oh Dae-hyun, Director General of Future Strategy and Technology Policy at the Ministry of Science and ICT, stated that advanced analysis is key to countering emerging crimes. The agencies will sponsor assignments contest before March 3, 2026.

In the next three years, the two agencies will bring together tech experts to research and develop a system to analyze dark web posts and their related crypto transactions to profile and doxx the traffickers. Moreover, the country has recorded a sharp uptick in drug trafficking cases, catalyzed by the adoption of cryptocurrency and dark web sites. 

“To respond to new types of drug crimes that combine anonymous environments such as the dark web and Telegram with virtual assets, securing advanced analysis technology is essential. We will continue to strengthen the foundation for responding to new types of crimes through science and technology,” Oh Dae-hyun stated.

Why Now?

The need to develop an advanced system in South Korea to help the investigators counter drug trafficking lords stems from global pressure. The United States has pushed more governments to curb drug trafficking organizations, as observed through the arrest of President Nicolas Maduro.

Last month, South Korea’s Customs Service announced that a total of 1,256 trafficking cases and 3,318 kilograms of illegal drugs were seized while securing the borders in 2025. Remarkably, the number of drug trafficking cases surged by 46% in 2025 compared to the previous year, as the total weight of drugs smuggled increased by 321%. 

A recent report from TRM Labs shows that the illicit crypto volume surged to a new all-time high of about $158 billion in 2025. The report noted that Western sanctions heavily contributed to the use of crypto assets in dark web drug trafficking operations.

Related: South Korea’s Stablecoin Bill Delayed as Lawmakers Fail to Reach a Consensus