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- Hong Kong dismantles crypto laundering network, seizing over HK$118 million in illicit funds.
- 12 arrested in crypto crackdown, uncovering HK$10 million tied to 58 fraud cases.
- Global rise in crypto crimes prompts Hong Kong to push for tougher penalties and stricter regulations.
The Hong Kong authorities managed to dismantle a massive network of cryptocurrency laundering, which is said to have laundered more than HK$118 million (US$15 million). The arrest of 12 people following the operation proves that the government is committed to tackling crypto-related crimes. To carry out the crackdown, officials from law enforcement agencies conducted raids in several different districts in Hong Kong, according to SCMP.
On Thursday, the Commercial Crime Bureau (CCB) conducted a series of coordinated and specific raids. Police arrested nine men and three women during the raids and their ages varied from 20 to 40 in different areas. Authorities found and carried away more than HK$1 million in cash, more than 560 bank cards, a number of communication devices and documents that could help solve the case.
HK$118 Million Laundered
Since mid-2023, the network has been trying to get people from the mainland to open fake accounts with various banks in Hong Kong. Money from different kinds of fraud was mainly laundered through these types of accounts. Following the transfer of the money, the gang members withdrew it with payment cards. And moved it to exchange sites to convert it into digital currency.
Authorities have found that two of those arrested from Hong Kong are the core organizers behind the crimes. In addition, there were ten mainland Chinese people in this group who posed as the owners of the fake accounts. It has been discovered through initial financial review that the organization moved HK$118 million. By using more than 550 different bank accounts and cryptocurrencies.
Authorities have found that money laundered from at least 58 cases of fraud totals more than HK$10 million. And causing victims to lose HK$43.2 million. A residential unit in Mong Kok was chosen as their headquarters. Where the recruits from the mainland were housed before receiving directions to deal with the money transactions.
Crypto Crimes on the Rise
Cryptocurrency crimes and scams are being seen more often, not just in Hong Kong but around the globe. A man from Wellington was apprehended in Auckland as part of an international investigation into cryptocurrencies. Seven individuals have been victimized, experiencing losses of about NZD $450 million (US$265 million).
Law enforcement has suggested that there should be tougher punishments for people who share their banking information to illegally receive funds. If convicted of money laundering in Hong Kong, a person may be sentenced to up to 14 years and could be fined up to HK$5 million. With the number of crypto crimes rising overseas, Hong Kong’s successful bust points out the threats these activities create.
