South Korean Watchdog: $7.2 Billion Transfered Overseas Mainly Through Crypto Exchanges

South Korea's financial watchdog found that since June there have been $7.2 billion "abnormal" foreign exchange transactions, most of which were transferred through cryptocurrency exchanges, Bloomberg reported on Thursday. The Financial Supervisory Service found an additional $680 million worth of "abnormal" money transfers. Transfers from Hana Bank, Kookmin Bank, Nonghyup Bank, Shinhan Bank, Woori Bank and seven other banks in the country were investigated and the probe will end by the end of October, the report said.

The majority of the funds were transferred to Hong Kong and 82% of the transfers were in U.S. dollars, the report added. Last month, South Korea had arrested 16 people for their involvement in illegal foreign exchange transactions worth $2 billion. Bloomberg had previously reported that South Korea was investigating Woori and Shinhan for transferring $3.4 billion worth of funds overseas.