Hong Kong Halts $230M Crypto Laundering Circle

Hong Kong authorities have busted three individuals involved in a cryptocurrency money laundering operation worth an estimated $230 million.

Hong Kong customs officers have arrested three individuals linked to a sizable HK$1.8 billion ($228 million) money laundering operation.

The scheme exploited a cryptocurrency platform and bank accounts tied to shell companies. Authorities took action after investigating suspicious activities characterized by “abnormally frequent” transactions.

Three Bursted In Cryptocurrency Money Laundering

A recent report shows that Hong Kong customs officers have apprehended three individuals in connection with a HK$1.8 billion ($228 million) money laundering scheme. The operation, which utilized a cryptocurrency platform and bank accounts associated with shell companies, raised suspicion due to abnormally frequent large transactions lacking transparent financial backgrounds.

The arrest involved three people, a woman and two men, who were detained for their suspected involvement in the case. Authorities believe they worked together between June 2021 and July 2022, creating five fake companies and opening 18 bank accounts.

Customs explained that these accounts often had many substantial transactions happening, even though the companies had no tax records, import/export paperwork, or even real offices. Customs also reported a breakdown of how the money flowed through the suspects.

The woman allegedly handled the most, managing HK$900 million. The driver dealt with HK$300 million, and the self-employed man HK$600 million.

Investigators traced the money’s source to a cryptocurrency exchange platform and over 200 companies, both local and international. Interestingly, the funds weren’t kept in the shell companies’ accounts for long but quickly moved on to other entities.