Hong Kong police arrested 12 people involved in a cross -border money laundering program that was based on crypto and more than 500 Stooge bank accounts to launder $ 118 million HK ($ 15 million), local media reported.
The union was dismantled on May 15, leading to the arrest of nine men and three women in continental China and Hong Kong.
The suspects would have recruited other people to open bank accounts to receive the product of fraud cases, which were then converted to crypto in crypto exchange stores to launder illicit funds, Hong Kong Commercial Daily reported May 17.
The criminal organization rented a residential unit in the Hong Kong district in Mong Kok to plan and carry out its money laundering activities. Of the laundry $ 15 million, more than 1.2 million dollars were linked to 58 cases of reported fraud.
Taken into action
The bust followed the police surveillance on May 15, when two recruits left the base of the Mong Kok union – one visiting one bank, the other an automatic window – before the two that convert into crypto money in an crypto exchange store in the Tsim Sha Tsui district.
The police arrested the two people on the spot, entering around $ 770,000 HK ($ 98,540) in cash before the funds were bleached. The other 10 people, aged 20 to 41, were arrested shortly after.
The police seized about $ 1.05 million HK ($ 134,370) in cash, more than 560 ATM cards, several mobile phones, banking documents and files related to cryptographic transactions.
The main TSE Ka-Lun Inspector of the Hong Kong Crime Commercial Office said that individuals often used bank accounts from their friends and family to launder stolen funds.
Hong Kong reported an increase of 12% in annual sliding of fraud reports in 2024, the authorities carrying out more than 10,000 arrests related to fraud. Among these arrests, around 73% involved people who held Stooge bank accounts.
In relation: The Doj invoices 12 other Bitcoin thieves of $ 263 million
The repression occurs while Hong Kong continues to deploy its cryptographic regulatory framework to support local innovation, protect consumers and establish themselves as a cryptographic center.
The Hong Kong Securities and Futures commission has introduced new rules for crypto exchanges offering jealous services in April. Two months earlier, the securities regulator deployed a roadmap to improve market access, optimize compliance, develop product offers, strengthen cryptographic infrastructure and promote relations with industry players.
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