Hong Kong police busts $15M laundering ring that used crypto, 500 financial institution accounts

Hong Kong police arrested 12 individuals concerned in a cross-border cash laundering scheme that relied on crypto and over 500 stooge financial institution accounts to launder HK$118 million ($15 million), native information retailers reported.

The syndicate was dismantled on Could 15, ensuing within the arrest of 9 males and three girls in mainland China and Hong Kong.

The suspects allegedly recruited others to open financial institution accounts to obtain proceeds from fraud circumstances, which have been then transformed into crypto at crypto trade retailers to launder the illicit funds, Hong Kong Industrial Every day reported on Could 17.

The prison group rented a residential unit within the Hong Kong neighborhood of Mong Kok to plan and perform its cash laundering actions. Of the $15 million laundered, greater than $1.2 million was linked to 58 reported fraud circumstances.

Caught in motion

The bust adopted police surveillance on Could 15, when two recruits left the syndicate’s Mong Kok base — one visiting a financial institution, the opposite an ATM — earlier than each went to transform the money into crypto at a crypto trade store within the neighborhood of Tsim Sha Tsui.

Police arrested each people on the spot, seizing round HK$770,000 ($98,540) in money earlier than the funds may very well be laundered. The opposite 10 people, aged between 20 and 41, have been arrested quickly after.

Police seized roughly HK$1.05 million ($134,370) in money, over 560 ATM playing cards, a number of cell phones, financial institution paperwork and information associated to crypto transactions.

Senior Inspector Tse Ka-lun of Hong Kong’s Industrial Crime Bureau claimed that the people usually used financial institution accounts from their family and friends to launder the stolen funds. 

Hong Kong reported a 12% year-on-year enhance in fraud stories in 2024, with authorities making greater than 10,000 fraud-related arrests. Of these arrests, round 73% concerned people who held stooge financial institution accounts.

Associated: DOJ prices 12 extra gamer-turned $263M Bitcoin robbers

The crackdown comes as Hong Kong continues to roll out its crypto regulatory framework to help native innovation, defend shoppers and set up itself as a crypto hub.

Hong Kong’s Securities and Futures Fee launched new guidelines for crypto exchanges providing staking companies in April. Two months earlier, the securities regulator rolled out a roadmap to enhance market entry, optimize compliance, develop product choices, strengthen crypto infrastructure and foster relationships with business gamers. 

Journal: Crypto wished to overthrow banks, now it’s turning into them in stablecoin battle