Hong Kong police busts $15M laundering ring that used crypto, 500 bank accounts
Hong Kong police arrested 12 individuals linked to a cross-border money laundering scheme involving cryptocurrency and over 500 stooge bank accounts, laundering HK$118 million ($15 million). The operation was dismantled on May 15, with arrests made in both mainland China and Hong Kong. Suspects recruited others to open bank accounts for receiving proceeds from fraud, which were converted into crypto at exchange shops. The syndicate operated from a rented unit in Mong Kok, with over $1.2 million tied to 58 fraud cases. Police surveillance led to the arrest of two recruits converting cash into crypto, seizing HK$770,000 ($98,540) in cash. Additional seizures included HK$1.05 million ($134,370), over 560 ATM cards, and related documents. A 12% increase in fraud reports was noted in Hong Kong for 2024, with a significant portion of arrests involving stooge accounts. The crackdown coincides with Hong Kong's efforts to enhance its crypto regulatory framework.
