Hong Kong police arrest 12 tied to a cross-border syndicate that laundered $15M via crypto and fake bank accounts.
The suspects, consisting of nine men and three women between the ages of 20 and 40, were apprehended during coordinated operations in various districts, according to the Hong Kong Police Force (HKPF).
A crypto syndicate operating in Hong Kong has been discovered to be operating 550 shell accounts
According to a report in the South China Morning Post, the syndicate is purported to have transferred more than HK$118 million ($15 million). The funds were transferred through over 550 fraudulent bank accounts and virtual asset platforms.
According to investigators, the suspects’ scheme was facilitated by acquiring or renting personal details and bank accounts from locals and mainland residents.
Police confiscated over HK$1.05 million ($134,000) in cash, 560 ATM cards, multiple mobile phones, and numerous financial documents during the investigations.
The group is believed to have targeted individuals from mainland China, according to the police. They facilitated the opening of shell accounts for these individuals in both conventional and digital institutions in Hong Kong.
“The syndicate had established an operational base in a flat in Mong Kok since mid-2024. Mainland recruits were housed in this location and awaited instructions to process illicit funds as they flowed into the shell accounts,” Chief Inspector Lo Yuen-shan said.
After entering these accounts, the funds were transferred through virtual asset exchanges to obscure their source. The suspects have been formally accused of conspiracy to commit money laundering.
This crackdown is the latest in a series of enforcement measures implemented to reduce the number of crypto-related crimes in the region.
A comparable cross-border operation was purportedly dismantled by the Hong Kong police in October 2024. Through romance and pig butchering schemes, the syndicate had defrauded victims of more than HK$360 million ($46 million).
University graduates with technical credentials were recruited by that organization, which then partnered with foreign cybercriminals to construct fraudulent investment platforms.
The authorities asserted that these endeavors align with the city’s aspiration to establish itself as a global center for virtual assets and safeguard its residents.
During a recent meeting with Qatari officials, Hong Kong legislator Johnny Ng underscored the city’s capacity to be a leader in Web3 and crypto innovation.
Ng emphasized the advantages of Hong Kong’s “one country, two systems” paradigm, legal infrastructure, and international talent pool. He stated that these are essential for fostering enterprise growth and promoting global expansion.
“I believe that Hong Kong’s ‘one country, two systems,’ combined with its professional services, international talent, and robust legal framework, will undoubtedly accelerate its role in connecting globally, while also assisting mainland and local enterprises in rapidly expanding overseas,” He said.