Hong Kong Police Dismantle Crypto Money-Laundering Syndicate, Arrest 22; Over HK$150 Million Involved in Three Months

November 11: According to Hong Kong media outlet Ming Pao, Hong Kong police have dismantled a cross-border criminal syndicate that laundered money through virtual currency over-the-counter (OTC) channels, arresting 22 people — 21 men and 1 woman aged between 21 and 54. Police investigations found the syndicate had been active since August this year, recruiting mainland individuals to come to Hong Kong to open puppet bank accounts and withdraw criminal proceeds in cash, then moving the funds to virtual currency OTC shops run by the syndicate, where the money was laundered through buying and selling virtual currencies and other methods. Police estimate the syndicate laundered more than HK$150 million between August and October this year alone.

It is understood that the syndicate had a clear division of labor. It first arranged for mainland individuals holding two-way permits to come to Hong Kong and open online banking accounts used to receive criminal proceeds; it then recruited cash-withdrawal operatives, who used bank cards distributed by the syndicate to withdraw cash from ATMs at different locations and different banks, after which runners collected the cash and transported it to OTC shops to complete the laundering.