Hong Kong Police Bust Cross-Border Money Laundering Syndicate Linked to HK$150 Million Crypto OTC Laundering

According to 深潮 TechFlow, on November 11, as reported by Ming Pao, Hong Kong police busted a cross-border money laundering syndicate. The syndicate recruited mainland residents to come to Hong Kong to open mule accounts, then used bank cards provided by the group to withdraw cash from ATMs. The cash was subsequently delivered to a cryptocurrency over-the-counter (OTC) shop operated by the syndicate's ringleader, who laundered the money through buying and selling cryptocurrencies and other methods.

Police launched Operation 'Thunder Net' over two consecutive days starting November 10, searching a hotel, a subdivided flat unit, and a shop disguised as a cryptocurrency OTC outlet. A total of 22 people (21 men and 1 woman, aged 21 to 54) were arrested, including 2 local residents and 20 mainland residents holding two-way permits. Two local core members were responsible for operating the money-laundering hub; one mainland runner was responsible for recruiting cash withdrawers, distributing bank cards, and collecting and transporting cash. The remaining 19 mainland residents served as account-opening 'snakeheads', cash withdrawers, and mule account holders.

Police believe the syndicate has been active since August this year and had laundered approximately HK$150 million from August to October. During the operation, more than 1,600 bank ATM cards, approximately HK$5.85 million in cash, and more than 200 mobile phones were seized.

Source: 深潮 TechFlow