Hong Kong customs racks up first bust of cryptocurrency money launderers, smashing HK$1.2 billion racket
- Authorities say syndicate used anonymity afforded by cryptocurrency to conceal its operations
- More than 60 per cent of funds had been funnelled through accounts in Singapore, prompting customs to seek help from authorities there
Hong Kong customs has shut down a local money-laundering syndicate that used cryptocurrency to process illegal funds totalling HK$1.2 billion (US$155 million), arresting the suspected ringleader and other members in the first operation of its kind in the city.
An investigation revealed more than 60 per cent of the funds had been funnelled through bank accounts in Singapore over 15 months, prompting local authorities to seek help from law enforcers there in tracking the money and its final recipients, according to Senior Superintendent Mark Woo Wai-kwan of customs’ syndicate crimes investigation bureau.
“It is the first time in Hong Kong that a money-laundering ring involved in using cryptocurrency to wash dirty cash and conceal the source of criminal assets was broken up,” he said, adding the modus operandi had made detection more difficult.
He said about HK$20 million believed to be criminal proceeds earned by the racket had been frozen in bank accounts belonging to the alleged mastermind and three shell companies he controlled.
During the operation, code-named “Coin Breaker”, customs officers last Thursday arrested the suspected mastermind, 33, and three other local men, aged 24 to 36, believed to have been recruited to register as the directors of the shell companies.