South Korea repatriates two suspects from UAE in US$2.3bn gambling case

One of the suspects was allegedly involved in developing gambling software for a network linked to US$372m in transactions.

South Korea.- South Korean investigators have arrested three alleged members of an illegal online gambling network in the UAE, nearly a decade after two of the suspects fled the country. Two suspects, identified as the alleged deputy leader and a software developer, were repatriated on October 14, while authorities pursue the extradition of the alleged ringleader.

South Korea’s government-wide Transnational Crime Special Response Task Force conducted the operation in cooperation with UAE authorities. Codenamed HALAK, an Arabic term meaning destruction, the operation involved intelligence-sharing to locate the suspects.

The alleged ringleader and deputy are accused of operating illegal gambling websites in the Philippines and Malaysia that handled 2.6tn won (US$1.9bn) in transactions. They are also suspected of laundering the proceeds. The pair fled South Korea in 2016, allegedly using passports issued by third countries to conceal their identities.

Their activities attracted public attention after reports emerged of lavish lifestyles abroad, including visits to upscale restaurants and entertainment venues, purchases of luxury goods and invitations to prominent South Koreans. The group was allegedly linked to BetEast, a sports betting website illegal in South Korea, which was advertised on Swansea City football club shirts in 2016.

The arrested software developer is also suspected of links to a separate illegal online gambling organisation that handled an estimated 500bn won (US$372.7m) in transactions. The developer allegedly managed the gambling software and operations. The suspected leader was arrested in the UAE and repatriated to South Korea in July.

South Korean President Lee Jae-myung thanked the UAE government and President Sheikh Mohamed bin Zayed Al Nahyan for their assistance. He said his government would continue pursuing fugitives abroad and recovering criminal proceeds.