Hong Kong Police Dismantle Major Money Laundering Syndicate Using Crypto and Over 500 Bank Accounts

Hong Kong police have dismantled a major money laundering syndicate that used crypto and over 500 bank accounts to launder illegal funds.

Hong Kong police have dismantled a major money laundering syndicate that used crypto and over 500 bank accounts to launder illegal funds. The group is believed to have laundered HK$118 million, around $15 million. On May 15, the police arrested nine men and three women. After this, people were taken into custody both in Hong Kong and on the mainland.

Over 500 Fake Bank Accounts Linked to HK Fraud Syndicate

It is said that members of this criminal group recruited others to set up bank accounts in Hong Kong. These accounts were used to withdraw funds from fraud incidents. Afterward, the suspects would go to virtual shops and swap their cash for cryptocurrency. This was done to keep the source of the illegally gained money secret.

The police found out from “Night Suppression” that the group had been working since mid-2024. They established their headquarters in a residential unit in Mong Kok. It was from here that they arranged and executed their activities.

Chief Inspector Lo Yuen-shan stated that during that period, the suspects used over 500 fake bank accounts for their transactions. Many types of fraud provided the money for these accounts. Throughout this period, they were responsible for laundering 118 million yuan. 10 million yuan of the fund was used in 58 cases of fraud. About 43.2 million yuan were lost by those who suffered in these cases.

The probe also uncovered that recruited mainlanders went to Hong Kong and stayed in the base. Leaders of the group gave specific orders for them to perform. Certain individuals used their accounts to take out the money, and others withdrew cash with ATM cards that belonged to other people. They went to the exchange shops to convert the cash they had withdrawn into cryptocurrency.

12 Arrested, 560 ATM Cards Seized in Major Fraud Crackdown

On May 15, police attacked suspects at several places. In addition, the authorities identified two people withdrawing money and going to a crypto shop in Tsim Sha Tsui. Upon arrest, the authorities confiscated almost 770,000 yuan from them. In total, 12 suspects were arrested during the operation, including two core members of the group. Most of the 10 other suspects were unemployed.

Other than cash, police took over 560 ATM cards, many mobile phones, and numerous bank and crypto transaction documents.

According to Superintendent Kwok Ching-yee, fraud is increasing in Hong Kong. In just 2024, almost 95,000 crimes were reported, with nearly half linked to fraud. Out of the more than 10,000 people arrested, 73% were linked to the fake accounts.

On the other hand, Senior Inspector Tse Ka-lun advised people to never hand over their bank accounts to anyone, even if it is a trusted friend or relative. Dealing with money from criminal activities is regarded as a serious crime in Hong Kong. Anyone who violates Section 25 of the Organized and Serious Crimes Ordinance can be sentenced to 14 years in prison and fined up to HK$5 million.

Finally, the police emphasized that they will continue to strengthen collaboration with banks and international partners. Moreover, they aim to combat money laundering at its source and safeguard Hong Kong’s reputation as a global financial hub.