Hong Kong Police Nabs 12 Suspects Operating Crypto Laundering Ring

Hong Kong police have now arrested 12 suspects in connection with a cross-border crypto and money laundering group. According to the investigation, this notorious group moved over HK$118 million, worth about $15 million, through local banks and crypto exchange shops. Authorities say this operation is part of Hong Kong’s broader crackdown on digital asset crime. How The Criminal Syndicate Operates The Commercial Crime Bureau led the investigation. Officers arrested two Hong Kong residents who were key members of the group. They also arrested ten people from mainland China. In total, nine men and three women, ages 20 to 42, were reportedly taken into custody, The local members helped the mainland suspects open fake bank accounts in Hong Kong. These accounts were created in both regular and digital banks, and the goal was to hide the source of the money. Crypto Shops Used to Hide Funds Source According to Police Superintendent Shirley Kwok Ching-yee, the group also used other people’s bank cards to withdraw large amounts of cash. The cash was then taken to crypto exchange shops in Hong Kong, converted into cryptocurrency. This method made it harder to track where the money came from. The syndicate created around 500 fake accounts to carry out its activities. Police reported that 58 scams earned at least HKD 10 million, valued at around $1.3 million. These bad actors tricked victims and funneled the stolen money through the group’s accounts. Notably, authorities worldwide are increasingly cracking down on crypto exchange shops that engage in illegal activities . Rising Fraud Cases in Hong Kong The Hong Kong enforcement team also shared that fraud cases in the city are growing. Compared to last year, fraud reports are up by nearly 12%. So far, more than 10,000 suspects have been arrested for fraud-related crimes in Hong Kong. Similarly, in the U.S., crypto scams and illegal activities are on the rise. In April, the FBI’s Internet Crime Complaint Center (IC3) shared in its 2024 report that digital asset scams have hit record levels. The IC3 received over 140,000 crypto-related complaints last year, with total losses reaching $9.3 billion. This is a sharp 66% increase from the $5.6 billion reported in 2023. While Hong Kong is working hard to promote the growth of digital assets, the government is also increasing its efforts to fight financial crimes. Officials say stopping money laundering is key to keeping the city’s economic system safe and trusted. Notably, many countries are doing the same by tightening crypto rules and increasing enforcement to prevent financial crimes and protect investors. The post Hong Kong Police Nabs 12 Suspects Operating Crypto Laundering Ring appeared first on TheCoinrise.com .

Source: The Coin Rise