Twelve individuals have been arrested in Hong Kong over a significant money laundering scheme involving cryptocurrency. Police said the group laundered millions through shell bank accounts and digital asset exchanges.
During raids, officers recovered HK$1.05 million in cash, over 560 ATM cards, phones, and banking documents. All suspects, aged between 20 and 40, face charges of conspiracy to commit money laundering.
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Mainland Chinese Nationals Recruited to Open Shell Accounts
According to the Commercial Crime Bureau, the syndicate began operations in July 2023. It recruited people from mainland China to open accounts at traditional and digital banks.
These shell accounts received funds linked to fraudulent activities, and members were instructed to withdraw large sums using other bank cards tied to the same network.
Superintendent Shirley Kwok Ching-yee stated that the police gave the funds to virtual asset exchange companies. The money was turned into cryptocurrency, which concealed where the funds came from.
Fraud and Crypto-Linked Crimes on the Rise in Hong Kong
Nearly 95,000 criminal cases were recorded last year in Hong Kong. Almost half were related to fraud, showing a sharp increase in tech-enabled financial crime.
In 2024 alone, 73 percent of fraud-related arrests involved shell account holders. According to authorities, many accounts are created to wash ill-gotten money through crypto.
Police have issued warnings that selling or renting bank information is illegal. Laws are being made tougher to prevent crypto from becoming a common tool in money laundering.
The Technology Crime Police Advisory Group has also addressed this issue. They want to remain attentive to crypto transactions and encourage tighter partnerships with financial companies.
As the arrests show, digital currencies play a more significant part in financial crime strategies. Authorities are working hard to monitor and disrupt any such laundering networks.
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