Hong Kong Thwarts Major Crypto Laundering Scheme
Authorities in Hong Kong have dismantled a important cross-border crypto laundering operation. The network allegedly laundered around HK$118 million (US$15 million) in illegal funds. The crackdown led to the arrest of 12 suspects.
On Thursday, the Commercial Crime Bureau executed a series of raids. They nabbed nine men and three women, aged 20 to 40, across various districts. The operation seized HK$1.05 million in cash, over 560 bank cards, and numerous communication devices.
Officials uncovered a scheme where mainland chinese citizens were recruited to open fake bank accounts. These accounts acted as channels for illicit money.The criminals converted the cash into cryptocurrencies. The operationS masterminds used these accounts to move money from scams. The suspects were caught with a trove of evidence, including cash and bank cards.
Investigators say the group began recruiting mainland Chinese individuals in mid-2023. These recruits opened accounts with traditional and digital banks. They then withdrew cash and exchanged it for crypto at exchange points. The operation’s headquarters was a Mong Kok apartment. It served as a base for processing fraudulent transfers.
Two Hong Kong residents were identified as the ringleaders. They were arrested alongside ten mainland Chinese nationals. the network funneled funds through more than 550 local bank accounts. The scheme involved withdrawing cash and converting it into digital currencies. The money came from various frauds. The victims suffered losses totaling HK$43.2 million.
Officials are pushing for stricter legal consequences for those who misuse their bank details for illegal activities. Under current laws,money laundering offenders face up to 14 years in prison and fines of up to HK$5 million.
Crypto-related crimes are increasing worldwide. Recently, a Wellington man was apprehended in Auckland for involvement in a crypto scam. The scheme allegedly swindled seven victims out of about $265 million (NZD $450 million).
