Hong Kong Police Dismantle Cross-Border Money Laundering Syndicate Tied to HK$150 Million in Crypto OTC Laundering

On November 11, Ming Pao reported that the Hong Kong Police Force dismantled a cross-border money laundering syndicate. The group recruited individuals from mainland China to open dummy accounts in Hong Kong, then used bank cards provided by the syndicate to withdraw cash from ATMs. The withdrawn cash was subsequently transported to an over-the-counter (OTC) cryptocurrency exchange shop operated by the ring's leader, who then laundered the funds through transactions involving virtual currencies.

Starting on November 10, police conducted a two-day operation codenamed "Thundernet," searching a hotel, a subdivided apartment unit, and a storefront disguised as a cryptocurrency OTC shop. A total of 22 suspects were arrested (21 men and 1 woman, aged 21 to 54), including two local residents and 20 mainlanders holding Double Entry Permits. Two local ringleaders coordinated the money laundering operations, one mainland runner recruited withdrawal agents, distributed bank cards, collected and transported cash, and the remaining 19 mainlanders acted as account-opening facilitators, cash withdrawers, and dummy account holders.

Authorities believe the syndicate has been active since August this year, having laundered around HK$150 million between August and October. During the operation, police seized over 1,600 bank debit cards, approximately HK$5.85 million in cash, and more than 200 mobile phones.