Twelve folks have been arrested in Hong Kong and mainland China for his or her alleged roles in a cross-border cash laundering operation that moved HK$118 million ($15 million) by way of cryptocurrency and lots of of fraudulent financial institution accounts, native media reported on Might 17.
Based on Hong Kong Industrial Every day, the prison syndicate used over 500 so-called stooge accounts (financial institution accounts opened or supplied by third events) to obtain proceeds from fraud instances.
The cash was then funneled by way of native crypto alternate retailers, successfully masking its origins.
Crypto Laundering Ring Operated from Mong Kok Condo, Police Say
The group is believed to have operated out of a rented condo in Mong Kok, the place they deliberate and coordinated laundering actions.
Authorities say greater than HK$9.4 million ($1.2 million) of the funds will be linked to no less than 58 confirmed fraud instances.
The operation got here to a head on Might 15 after police surveillance tracked two suspected syndicate recruits leaving the Mong Kok base—one visiting a financial institution, the opposite an ATM.
Each people later tried to transform money into cryptocurrency at a store in Tsim Sha Tsui.
Officers intervened earlier than the funds could possibly be laundered, arresting each on the spot and seizing round HK$770,000 ($98,540) in money.
Ten extra suspects, aged between 20 and 41, had been apprehended quickly after.
Throughout the raids, authorities recovered roughly HK$1.05 million ($134,370) in money, over 560 ATM playing cards, a number of cellphones, and paperwork linked to financial institution and crypto transactions.
Senior Inspector Tse Ka-lun of the Industrial Crime Bureau acknowledged that lots of the financial institution accounts used within the scheme had been supplied by mates and kinfolk of these concerned, usually with out understanding the complete extent of the prison exercise.
The arrests come amid a surge in fraud-related crimes within the metropolis. Studies of fraud rose by 12% in 2024, with over 10,000 associated arrests.
HK police arrest 12 suspects in $15M crypto laundering tied to 500+ financial institution accounts and 58 fraud instances
$15M isn’t even that a lot tbh, barely well worth the problem. pic.twitter.com/qZSaMEbJB2— Gordon (@AltcoinGordon) Might 18, 2025
Police famous that about 73% of these instances concerned people controlling stooge accounts.
Hong Kong Intensifies Crypto Crackdown
The crackdown coincides with Hong Kong’s broader efforts to tighten oversight of its crypto sector.
Final week, Hong Kong Cyber Safety and Expertise Crime Bureau (CSTCB) introduced the launch of a digital asset evaluation device to help in crypto crime investigations.
Dubbed ‘CryptoTrace’, the device is developed in collaboration with the College of Hong Kong, providing “superior intelligence and investigation help to crime investigation models.”
The Bureau mentioned that they carried out digital asset investigations and CryptoTrace coaching classes in March.
The course was geared toward strengthening the capabilities of frontline officers in dealing with digital asset instances.
Along with combating crypto-related crimes, CSTCB has been actively partaking with stakeholders throughout sectors.
Titus, a authorized agency in Hong Kong, famous that the city-state misplaced a staggering $3.1 billion within the first 10 months of 2024 to crypto-related scams.
Moreover, the federal government lately uncovered a classy rip-off associated to the faux “Nationwide Hong Kong Coin.” The rip-off misled the general public into believing the federal government would quickly launch an official digital forex.
The publish Hong Kong Police Bust $15M Crypto Cash Laundering Ring, Arrest 12 appeared first on Cryptonews.