365Crypto
Hong Kong police have arrested 12 people for running a $15 million crypto money laundering ring. The group used more than 500 bank accounts and crypto exchanges to clean dirty money.
On May 15, nine men and three women were taken into custody in Hong Kong and mainland China. The criminals used fake bank accounts to move stolen money. Then they turned the cash into crypto at exchange shops to hide where it came from.
Police found their base in Mong Kok, a crowded neighborhood in Hong Kong. The gang even rented an apartment there to plan their operation.
Out of the total laundered funds, $1.2 million came from 58 known fraud cases.
Caught in the Act
On the day of the raid, officers watched two gang members leave their hideout. One went to a bank, the other to an ATM. Then both met up in Tsim Sha Tsui to swap the cash for crypto.
Police moved fast and arrested them on the spot. They seized about $98,500 in cash before it could be converted. Soon after, they arrested the rest of the gang, aged between 20 and 41.
In total, police took $134,000 in cash, 560+ ATM cards, mobile phones, and crypto transaction records.
Senior Inspector Tse Ka-lun said many of the accounts were opened by the suspects’ friends and family.
Rising Crypto Crime in Hong Kong
Fraud cases in Hong Kong are on the rise, up 12% from last year. Over 10,000 people have been arrested for fraud in 2024, and most of them used fake bank accounts.
This comes as Hong Kong pushes new crypto rules to clean up the industry. The government wants to support crypto innovation while cracking down on crime.
In April, regulators added rules for staking services. In February, they released a roadmap to improve access, compliance, and trust in the crypto sector.
Footnote:
Crypto exchange shops = physical stores that convert cash to cryptocurrency
Staking = earning rewards by locking crypto in a blockchain network
Laundering = making illegal money look legal
