Article Summary
Hong Kong police have dismantled a money-laundering ring that moved 15 million HKD through more than 550 accounts and crypto trades. Twelve suspects, aged 20 to 40, were arrested in operations across mainland China and Hong Kong, facing charges of conspiracy to commit money laundering. The syndicate recruited mainland individuals to open shell bank accounts and processed illicit funds every day through a flat in Mong Kok. The arrests led to the seizure of 1.05 million HKD, 134,000 in other currencies, 560 ATM cards, and several phones.
What This Means for You
- Money-laundering continues to be an issue within the cryptocurrency ecosystem, although law enforcement agencies are increasingly cracking down on these activities.
- Using shell accounts to launder money remains a popular tactic, with mainland recruitment and crypto exchanges being involved in the process.
- Hong Kong is experiencing an increase in fraud-related crimes, making it critical to strengthen security measures and remain vigilant when using banking and crypto services.
- Stiffer penalties and stricter regulations on money laundering are being considered to deter criminals, with friends and family unknowingly lending their accounts to launderers.
Original Post
Hong Kong authorities have dismantled a $15 million laundering syndicate, arresting 12 suspects and seizing hundreds of ATM cards. The group used mainland recruits to open shell accounts tied to illicit funds.
Shell Account Recruitment
Investigators discovered that the group hired mainland individuals to open shell bank accounts receiving funds from various fraud schemes. Recruits then withdrew cash using different ATM cards and moved the money to virtual-asset exchanges for conversion into digital tokens and mixing into other transactions.
Source: IC3
Mong Kok Flat Base of Operations
The syndicate operated out of a flat in Mong Kok since mid-2024, housing mainland recruits who processed illicit funds daily. Raids on the premises led to the recovery of 600,000 HKD in cash and numerous bank documents.
HONG KONG POLICE BUST $15M CASH & CRYPTO LAUNDERING RING
Hong Kong authorities have dismantled a $15 million laundering syndicate, arresting 12 suspects and seizing hundreds of ATM cards. The group used mainland recruits to open shell accounts tied to illicit funds.
Nearly half… pic.twitter.com/mcELDjFe3C— Crypto Town Hall (@Crypto_TownHall) May 18, 2025
Following Leads to a Significant Seizure
Two key figures from the flat led police to a big seizure of approximately 770,000 HKD in cash at a crypto exchange shop in Tsim Sha Tsui. In total, law enforcement recovered roughly 1.05 million HKD, Laundering syndicate: 12 arrests in cash and crypto across all raids.
Total crypto market cap at $3.25 trillion on the daily chart:
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