Hong Kong – In a major crackdown on crypto-related financial crimes, Hong Kong police have arrested 12 individuals allegedly involved in laundering over HK$118 million (US$15 million) through a complex network of bank accounts and cryptocurrency exchange shops.
Operation “Night Raid” Uncovers Cross-Border Laundering Network
The operation, dubbed “Night Raid,” was carried out by the Commercial Crime Bureau. It targeted a cross-border syndicate suspected of running a large-scale money laundering operation using more than 500 bank accounts.
The 12 arrested individuals – aged between 20 and 41 – include two local ringleaders and 10 mainland Chinese nationals. The suspects allegedly opened “stooge accounts” to receive proceeds from various fraud schemes, which were later converted into cryptocurrency to hide their origin.
How the Crypto Laundering Scheme Worked
Police investigations revealed the group rented an apartment in Mong Kok, where members waited for instructions from the syndicate leaders. Once illegal funds were deposited into the stooge accounts, the money was:
- Withdrawn in cash
- Brought to virtual asset exchange shops
- Converted into cryptocurrency (to obscure the trail)
Authorities seized:
- HK$1.05 million in cash
- Over 560 ATM cards
- Numerous mobile phones and bank documents
Link to Fraud Cases
Officials confirmed that HK$10 million of the laundered funds are connected to 58 reported fraud cases, causing total victim losses of around HK$43.2 million.
Superintendent Shirley Kwok Ching-yee warned that individuals should not rent or sell their bank accounts, as they risk becoming involved in criminal activity and facing serious legal consequences.
Crypto Crime on the Rise
This case highlights growing concerns around the use of cryptocurrency for money laundering. According to Hong Kong authorities:
- Almost 95,000 crimes were recorded last year
- Nearly half involved fraud
- Over 10,000 arrests were made, with 73% of suspects linked to “shell accounts”
Conclusion
This high-profile crypto laundering bust serves as a reminder of the risks associated with poorly regulated digital asset transactions. It also underscores the importance of KYC (Know Your Customer) and AML (Anti-Money Laundering) compliance in the crypto industry.
As Hong Kong works to establish itself as a global crypto hub, authorities are tightening regulations and reinforcing cross-border cooperation to combat financial crime in the digital asset space.