The Hong Kong police have destroyed the Crypto Laundering Syndicate across a border after arresting 12 suspects. The group allegedly looted HK $ 118 million (about $ 15 million USD) through a network of over-the-counter Crypto exchange shops and traditional banks. Officials said that this money came from various scams and was converted into cryptocurrency to hide its origin.
The suspects are two important local individuals and ten mainland Chinese operatives, all between 20 and 42. Police found that Syndicate operated with shell accounts and several bank cards, which are to hide illegal money. This situation shows the difficulties that are accompanied by the officials of the region to prevent crypto laundering.
Crypto Laundering Ring exposed in Hong Kong
On Thursday, Commercial Crime Bureau execute One raid at several places in Hong Kong. Police received more than HK $ 1.05 million cash, 560 ATM cards, various electronic equipment and financial documents. Superintendent of the city banks, Sherly Quok Ching-Yi, said that people from mainland were engaged in a plan to establish accounts in Hong Kong banks.
“These accounts were allegedly used to get illegal income from various fraud schemes,” said Superintendent Quok. The suspects withdrew cash using various bank cards and took the money to the virtual asset exchange stores. There, the funds were converted into cryptocurrency, and as a result the crypto laundering facility.
Apart from this, Chief Inspector Low UN-Shan said that Syndicate operated an office in Mong Coke from mid-2012. The mainland recruitment was later in place and waited for instructions to process illegal money.
Scope of crypto laundering activities
After an investigation, the police found that the group found HK more than $ 118 million bang using 550 bank accounts and transactions connected with virtual assets. Also, FUnder surveillance, the police arrested two major local members after withdrawing the cash from the ATM and moved to exchange shops.
As a result, of these Crypto fraud casesMore $ 10 million from HK was linked to about 58 incidents, and the victims lost the estimated total HK $ 43.2 million.
The syndicate had about 500 fake accounts and was used for money laundering. They will first receive money from ATM using someone else nominated, then will take the money to the Crypto exchange platforms.
Regulatory and law enforcement response
The Hong Kong Police, however, has increased efforts to deal with fraud and money laundering in the digital asset sector. In addition, since October 2023, the sentence for money laundering offenses has increased by 10 to 15 percent, with three months to 18 months sentence. Concurrently, new reports have indicated flaws in the cryptocurrency system, one of which is delayed by a tether.
Due to this delay, UsDT’s price over $ 78 million Since 2017 was transferred between Etharium and Tron Blockchain. Therefore, these flaws are more likely to laundering crypto, which requires strict supervision.
Amid the increasing incidents of Crypto Laundering, senior Inspector Tse-K-Loon has warned that individuals who have been fined HK $ 5 million under the ordinance of 14 years of jail and organized and serious offenses have warned their bank accounts for money laundering. Officials emphasized that difficult action is necessary to curb the use of individual bank accounts in illegal financial activities.
Calvin Munene Murithi
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