Outside Source
Hong Kong customs dismantled a sophisticated money-laundering syndicate that processed over $190 million through crypto transactions and over 200 bank accounts.
Hong Kong customs authorities have cracked down on a money-laundering operation that funneled HK$1.5 billion (around $192 million) in suspected criminal proceeds through crypto and more than 200 bank accounts, the South China Morning Post has learned, citing sources familiar with the matter.
The report states that the crackdown led to the arrest of four suspects, including a man, his father, and a close female relative who served as the company secretary for three shell companies involved in the scheme.
The syndicate, allegedly operated by the family, utilized nearly four dozen bank accounts linked to six shell companies to collect and launder suspicious funds originating from South Korea. Over a two-year period from August 2020 to August 2022, these accounts processed more than 2,000 transactions, the report reads.
Inspector Poon Yip-kan of the customs’ financial investigation bureau reported that the illicit funds were swiftly moved through the shell company accounts and dispersed into 180 third-party bank accounts to obscure their origin. Among the accomplices was a taxi driver, who reportedly was making about $9,000 a month to launder $38.4 million through crypto on overseas platforms. The report does not specify which platforms were used.
According to the SCMP, the authorities managed to freeze $280,000 in related accounts, though the exact scale of frozen funds remains unclear. The suspects have been released on bail pending further investigation, with authorities indicating that additional arrests may follow as they continue to trace the flow of illegal funds.
This article first appeared at crypto.news
