Hong Kong Arrests 12 in $15 Million Crypto Laundering Plot

Authorities in Hong Kong have arrested 12 individuals tied to a cross-border criminal syndicate. The group allegedly laundered over $15 million through cryptocurrencies and hundreds of fraudulent bank accounts.

The Hong Kong Police Force (HKPF) announced that the suspects—nine men and three women aged between 20 and 40—were apprehended during coordinated raids across various districts.

Hong Kong Uncovers Crypto Syndicate Running 550 Shell Accounts

According to a South China Morning Post report, the syndicate allegedly funneled over HK$118 million ($15 million). The funds moved through more than 550 fraudulent bank accounts and virtual asset platforms.

Investigators revealed that the suspects obtained or rented personal details and bank accounts from locals and mainland residents to facilitate their scheme.

During the raids, police confiscated over HK$1.05 million ($134,000) in cash, 560 ATM cards, multiple mobile phones, and numerous financial documents.

Police say the group targeted individuals from mainland China. They helped these individuals open shell accounts in both conventional and digital banks 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.

Once the funds entered these accounts, they were moved through virtual asset exchanges to conceal their origins. The suspects have been formally charged with conspiracy to commit money laundering.

This crackdown adds to a growing list of enforcement actions aimed at curbing crypto-related crimes in the region.

In October 2024, the Hong Kong police reportedly dismantled a similar cross-border operation. The syndicate had defrauded victims of over HK$360 million ($46 million) through romance and pig butchering scams.

That group had recruited university graduates with tech backgrounds and collaborated with foreign cybercriminals to build fake investment platforms.

The authorities stated these efforts support the city’s ambition to become a global hub for virtual assets and protect its residents.

In a recent meeting with Qatari officials, Hong Kong lawmaker Johnny Ng emphasized the city’s potential to lead in Web3 and crypto innovation.

Ng highlighted Hong Kong’s “one country, two systems” model, its legal infrastructure, and international talent pool as key advantages. He said these are crucial for driving global expansion and supporting enterprise growth.

“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.