- Police arrested 12 people in Hong Kong and mainland China for laundering $15 million using crypto and over 500 bank accounts.
- The syndicate rented a residential unit in Mong Kok, Hong Kong, to plan and run operations.
- Officials seized about $134,000 in cash, over 560 ATM cards, mobile phones, and bank and crypto records.
- Police linked over $1.2 million of the laundered funds to 58 reported fraud cases.
- The crackdown aligns with ongoing crypto regulations in Hong Kong aimed at supporting innovation and consumer protection.
Authorities in Hong Kong and mainland China arrested 12 individuals on May 15, dismantling a money laundering syndicate accused of processing $15 million through cryptocurrencies and more than 500 bank accounts. The group used these accounts to handle proceeds from fraud and then converted the money into digital assets at local crypto exchange shops.
The suspects included nine men and three women. Hong Kong police reported that some of the illicit cash traced through these accounts totaled over $1.2 million and related to 58 separate fraud cases. Senior Inspector Tse Ka-lun of the Commercial Crime Bureau stated the syndicate often used bank accounts belonging to friends and family to move the stolen funds.
The operation was based out of a rented residential unit in Mong Kok, where the criminal group coordinated its activities. On May 15, police observed two associates leaving this location—one visited a bank, the other an ATM—then both went to a nearby crypto exchange shop in Tsim Sha Tsui to convert the money into cryptocurrency.
Authorities arrested the two individuals at the exchange, confiscating approximately $98,500 in cash before it could be laundered. Within hours, police apprehended the remaining 10 syndicate members, aged between 20 and 41. Police also seized about $134,000 in cash, over 560 ATM cards, several mobile phones, and records detailing bank and crypto transfers.
Hong Kong has reported a 12% year-on-year rise in fraud cases in 2024, resulting in more than 10,000 arrests, with about 73% involving the use of so-called "stooge" bank accounts controlled by third parties.
The crackdown occurred as Hong Kong’s Securities and Futures Commission continues to expand its crypto regulatory measures. In April, new rules for crypto exchanges offering staking services were introduced. Earlier, the Commission launched a roadmap aimed at improving access, compliance, infrastructure, and product offerings within the local market.
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