Twelve individuals 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 cryptocurrency and a whole bunch of fraudulent financial institution accounts, native media reported on Could 17.
Based on Hong Kong Industrial Every day, the legal syndicate used over 500 so-called stooge accounts (financial institution accounts opened or offered by third events) to obtain proceeds from fraud circumstances.
The cash was then funneled by native crypto trade outlets, successfully masking its origins.
Crypto Laundering Ring Operated from Mong Kok Condominium, Police Say
The group is believed to have operated out of a rented condominium 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 might be linked to at the very least 58 confirmed fraud circumstances.
The operation got here to a head on Could 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 further 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 cell phones, and paperwork linked to financial institution and crypto transactions.
Senior Inspector Tse Ka-lun of the Industrial Crime Bureau said that most of the financial institution accounts used within the scheme had been offered by buddies and family of these concerned, typically with out understanding the complete extent of the legal exercise.
The arrests come amid a surge in fraud-related crimes within the metropolis. Stories 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 circumstances
$15M isn’t even that a lot tbh, barely definitely worth the trouble. pic.twitter.com/qZSaMEbJB2— Gordon (@AltcoinGordon) Could 18, 2025
Police famous that about 73% of these circumstances 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 instrument to help in crypto crime investigations.
Dubbed ‘CryptoTrace’, the instrument is developed in collaboration with the College of Hong Kong, providing “superior intelligence and investigation assist to crime investigation items.”
The Bureau mentioned that they performed digital asset investigations and CryptoTrace coaching periods in March.
The course was aimed toward strengthening the capabilities of frontline officers in dealing with digital asset circumstances.
Along with preventing 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 complicated 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.
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