ChainThink reports that on March 5, according to Hong Kong 01, the Hong Kong Police cracked a money laundering case involving puppet accounts and virtual currency exchange outlets. Two individuals from mainland China traveled to Hong Kong to open puppet bank accounts, using 43 local bank accounts to receive proceeds from 34 separate fraud cases, and then purchased cryptocurrencies through virtual asset exchange outlets to launder approximately HK$17.3 million in illicit funds.
Fund flow analysis revealed that criminal groups used local bank accounts to conduct cryptocurrency transactions, laundering up to HK$230 million in illicit funds. Hong Kong police charged two individuals with three and ten counts of money laundering, respectively. After reviewing the case, the court approved enhanced sentences of 28 months and 43 months in prison for the two individuals.