Authorities in Hong Kong have arrested 12 people tied to a cross-border felony syndicate. The group allegedly laundered over $15 million via cryptocurrencies and tons of of fraudulent financial institution accounts.
The Hong Kong Police Power (HKPF) introduced that the suspects—9 males and three girls aged between 20 and 40—have been apprehended throughout coordinated raids throughout numerous districts.
Hong Kong Uncovers Crypto Syndicate Working 550 Shell Accounts
In keeping with a South China Morning Publish report, the syndicate allegedly funneled over HK$118 million ($15 million). The funds moved via greater than 550 fraudulent financial institution accounts and digital asset platforms.
Investigators revealed that the suspects obtained or rented private particulars and financial institution accounts from locals and mainland residents to facilitate their scheme.
In the course of the raids, police confiscated over HK$1.05 million ($134,000) in money, 560 ATM playing cards, a number of cell phones, and quite a few monetary paperwork.
Police say the group focused people from mainland China. They helped these people open shell accounts in each standard and digital banks in Hong Kong.
“The syndicate had established an operational base in a flat in Mong Kok since mid-2024. Mainland recruits have been housed on this location and awaited directions to course of illicit funds as they flowed into the shell accounts,” Chief Inspector Lo Yuen-shan mentioned.
As soon as the funds entered these accounts, they have been moved via digital asset exchanges to hide their origins. The suspects have been formally charged with conspiracy to commit cash laundering.
This crackdown provides to a rising checklist of enforcement actions aimed toward curbing crypto-related crimes within the area.
In October 2024, the Hong Kong police reportedly dismantled the same cross-border operation. The syndicate had defrauded victims of over HK$360 million ($46 million) via romance and pig butchering scams.
That group had recruited college graduates with tech backgrounds and collaborated with international cybercriminals to construct faux funding platforms.
The authorities acknowledged these efforts assist the town’s ambition to turn into a world hub for digital property and shield its residents.
In a latest assembly with Qatari officers, Hong Kong lawmaker Johnny Ng emphasised the town’s potential to steer in Web3 and crypto innovation.
Ng highlighted Hong Kong’s “one nation, two methods” mannequin, its authorized infrastructure, and worldwide expertise pool as key benefits. He mentioned these are essential for driving world growth and supporting enterprise progress.
“I consider that Hong Kong’s ‘one nation, two methods,’ mixed with its skilled companies, worldwide expertise, and strong authorized framework, will undoubtedly speed up its position in connecting globally, whereas additionally helping mainland and native enterprises in quickly increasing abroad,” He mentioned.
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