South Korea’s Supreme Prosecutors’ Office is looking to hunt down illegal crypto funds by purchasing a software program that tracks down crypto transactions and sources, a local media outlet reported Friday.

See related article: DPRK hackers sneak US$52 mln in crypto into S.Korean exchanges: Chainalysis

Fast facts

The tracking program is expected to be used by the Special Investigations Unit for Corruption Crimes at the Seoul Central District Prosecutors’ Office, which is investigating over US$7.2 billion worth of funds illegally transferred overseas via a crypto exchange.

The prosecutors reportedly suspect the remitted funds are related to money laundering and hidden property overseas, and are working with the National Tax Service and local financial authorities. 

While the prosecutors have not specified the firm or entity from which they will purchase the tracking software, the authorities have requested that the software provide real-time monitoring of crypto transactions, information on the connection between different transactions, transaction details between wallets and exchanges and the source of illegal funds, Kukmin Daily reported. 

Other government agencies such as the U.S. Federal Bureau of Investigation (FBI) and Europol have worked with Chainalysis, a U.S.-based blockchain data analysis firm, in tracing illicit blockchain activities, such as that of North Korean hackers. 

Meanwhile, South Korea’s National Police Agency has signed a memorandum of understanding (MOU) with the country’s top five digital asset exchanges — Upbit, Bithumb, Coinone, Korbit and Gopax.

The parties will cooperate on crime investigation involving crypto assets, prevention of money laundering and damages from such illegal activities. 

See related article: South Korea seizes US$184 mln in crypto towards unpaid taxes