The syndicate was traced by the authorities to an apartment in Mong Kok, used for carrying out the illegality, where individuals from the mainland were relocated and housed to process the money via hundreds of local bank accounts. The police kept an eye on suspects leaving the Mong Kok unit and going to banks and ATMs, withdrawing big amounts of cash. They were arrested at a crypto exchange in Tsim Sha Tsui, where the authorities confiscated cash worth USD 98,500.
According to the report, the ring was accused of laundering approximately USD 15.1 million between July 2024 and May 2025. 12 individuals aged between 20 and 41 years old were taken into custody, and cash evidence was seized.
The levels of fraud-related crime went up in Hong Kong in the last years. Half of the criminal cases registered in 2024 were related to fraud, and over 10,000 individuals were arrested as a result, 73% of whom were found to possess stooge or shell accounts.
The crypto laundering group allegedly moved money using over 550 bank accounts and more than 560 ATM cards registered under their name and the name of unidentified individuals. The criminals withdrew money in cash and bought over-the-counter crypto in exchange shops to hide the original identity of the stolen cash. From the total sum of the laundered money, the police found that USD 1.28 million was connected to known fraud cases, with USD 5.52 million taken from numerous victims.
While raiding, the authorities recovered over USD 134,400 in extra funds. They also found several phones, banking files, and documents regarding transactions made using digital assets.
The syndicate used gaps in personal banking and crypto exchanges to start its illegal activity, as the suspects supposedly utilised purchased or borrowed bank accounts. Authorities are currently pushing for stricter punishment for those who rent out their accounts. At the moment, handling criminal property knowingly is punished by 14 years in jail and a fine of USD 640,000, as per the Organised and Serious Crimes Ordinance. Additionally, police, banks, and digital platforms are collaborating to stop further money laundering in the future.
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