- 12 suspects arrested for laundering HK$118 million via crypto exchanges.
- Funds linked to 58 fraud cases, totaling HK$43.2 million in losses.
- Police seize over HK$1 million in cash and 560+ ATM cards in raids.
Hong Kong police have arrested 12 individuals linked to a cross-border money laundering syndicate. The group laundered about HK$118 million (US$15 million) through several bank accounts and crypto exchange shops. The syndicate converted the funds into cryptocurrency which has raised concerns even as the city continues to fight financial crime.
The operation led to the arrest of 2 individuals, who led the syndicate, in Hong Kong and the other ten members from mainland China . The individuals are aged between 20 to 42 years and are suspected to carry out the money-laundering process. Authorities discovered that the suspects had recruited mainland Chinese citizens to open shell bank accounts in Hong Kong. The shell accounts received proceeds from scams, which were later withdrawn and converted into cryptocurrency.
Hong Kong Police Arrests Crypto Money Launderers
The police confirmed that over 550 bank accounts were used to launder the illicit funds. The funds were withdrawn from these accounts and converted to digital assets at crypto exchange stores. Authorities have linked around HK$10 million of the laundered money to 58 reported fraud cases. The scam has cost the victims a total of HK$43.2 million in losses.
The authorities have revealed that the scheme started around July 2024. The syndicate used a flat in Mong Kok to conduct operations and house the mainland recruits. The mainland operatives used bank cards of unknown individuals to withdraw cash from ATMs and then transport the funds to exchange stores to convert them into cryptocurrency.
On Thursday, police arrested two key suspects as they withdrew cash from a fake account. The officers later raided multiple locations in Hong Kong where they arrested other suspects. Also, police found more than HK$1 million in cash, more than 560 ATM cards and numerous mobile phones. These raids are part of other law enforcement actions to address financial crimes in the region.
Hong Kong Ramps Up Efforts to Combat Fraud
Hong Kong police continue to crack down on money laundering and fraud. Police have stated that individuals who rent or sell their personal bank accounts to facilitate fraud will face severe penalties. Under the Organized and Serious Crimes Ordinance, convicted money launderers could face up to 14 years in prison and a fine of up to HK$5 million.
There is an increase of fraud cases in Hong Kong, with nearly 47,000 cases reported last year. The cases involved shell bank accounts used to launder illicit money. The police’s actions aim to protect Hong Kong’s financial system.
The authorities have warned that tougher sentences will be meted out on convicted money launderers. This approach intends to prevent money laundering activities in future.
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