South Korean authorities have revealed a $9.84 billion illegal foreign exchange scandal, with 73% of the transactions linked to cryptocurrency arbitrage. The so-called Kimchi premium, a price difference between South Korean and international exchanges, has been exploited by traders to conduct unregulated forex activities. According to the South Korean Customs Service, 961 cases were identified, with crypto-related crimes accounting for $6.88 billion of the illicit dealings. This highlights the ongoing challenges regulators face in addressing cross-border crypto arbitrage that often evades legal and capital controls.