Local news outlets reported that Hong Kong police arrested 12 people involved in a border-limit money laundering scheme on Crypto and Crypto, which depended on more than 500 stegge bank accounts to launded HK $ 118 million ($ 15 million).
The syndicate was destroyed on 15 May, resulting in the arrest of nine men and three women in the mainland China and Hong Kong.
The suspects recruited other people to open bank accounts to get income from alleged fraud cases, which then converted into crypto to Crypto Exchange shops. Informed On 17 May.
The criminal organization rented a residential unit in Hong Kong neighbor of Mong Coke and carried out its money laundering activities. Of the loot of $ 15 million, more than $ 1.2 million was connected to 58, which was associated with fraud cases.
Caught in action
Bust followed the police surveillance on 15 May when two recruitments left the Mong Coke Base of Syndicate – a bank visiting, the other an ATM – before the two went to Convert Cash at Crypto at a Crypto Exchange Shop in Tsim Sham Tsui’s neighborhood.
The police arrested both the persons on the spot, seizing HK $ 770,000 ($ 98,540) in cash before robbing the funds. Other 10 persons aged 20 to 41 were arrested soon.
Police seized records related to more than 560 ATM cards, several mobile phones, bank documents and crypto transactions in HK $ 1.05 million ($ 134,370) cash.
Senior inspector of Hong Kong’s Commercial Crime Bureau, Tse Ka-Lun claimed that individuals often used bank accounts from their friends and family to rob stolen funds.
In 2024, Hong Kong reported an increase in fraud reports 12% year-away, in which the authorities made arrests related to more than 10,000 fraud. In those arrests, about 73% included individuals who had stogue bank accounts.
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The crack comes when Hong Kong continues to support its crypto regulatory structure to support, protect consumers and establish themselves as a crypto hub.
Hong Kong’s Securities and Futures Commission introduced new rules for crypto exchanges offering staking services in April. Two months ago, the securities regulator rolled out a roadmap roll out to improve market access, adapt compliance, expand product offerings, strengthen the crypto infrastructure and promote relationships with industry players.
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