Odaily Planet Daily reports: In September 2024, the Hong Kong Police Force’s Commercial Crime Bureau launched Operation "Sinking Strike," uncovering a cross-border money laundering syndicate. Two individuals from mainland China arrived in Hong Kong and opened multiple dummy accounts at local digital banks to receive proceeds from fraud schemes, then transferred the funds to traditional bank accounts to withdraw cash and purchased cryptocurrencies through virtual asset exchange outlets to obscure the origin and destination of the funds. Between August and September 2024, the two laundered approximately HK$17.3 million in criminal proceeds. During the same period, the syndicate conducted cryptocurrency transactions via Hong Kong bank accounts, totaling HK$230 million in laundered funds. Today, both individuals were convicted of money laundering in the District Court, with their sentences increased by approximately 20%, resulting in prison terms of 28 months and 43 months respectively.
Hong Kong Police Uncover $295 Million Crypto Money Laundering Scheme; Two Sentenced to 28 and 43 Months
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Summary
In September 2024, Hong Kong police dismantled a major AML case, uncovering a $295 million cryptocurrency money laundering scheme. Two suspects from the mainland used dummy accounts at local digital banks to siphon proceeds from fraud, then transferred the funds to traditional banks and crypto markets to obscure their trail. Between August and September 2024, they laundered HKD 17.3 million, with total illicit flows reaching HKD 289 million. Both were sentenced in the District Court to 28 and 43 months in prison, respectively, with penalties increased by approximately 20%. The case underscores ongoing efforts to strengthen oversight of liquidity and crypto markets.
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