Hong Kong police have broken up a money‑laundering ring that moved 15 million through more than 550 accounts and crypto trades. Twelve suspects, aged 20 to 40, were arrested in operations across mainland China and Hong Kong. They now face charges of conspiracy to commit money laundering, Hong Kong Commercial Daily reported on May 17.
According to investigators, the group hired people from the mainland to open shell bank accounts. Those recruits received funds from various fraud schemes.
They withdrew cash with different ATM cards, then sent the money to virtual‑asset exchanges. From there, it was converted into digital tokens and mixed into other transactions.
Based on reports from Chief Inspector Lo Yuen‑shan, the syndicate ran its operations out of a flat in Mong Kok since mid‑2024. Mainland recruits were housed there.
They processed illicit funds through those shell accounts every day. In one raid on that flat, officers found 600,000 HKD in cash and dozens of bank documents.
HONG KONG POLICE BUST $15M CASH & CRYPTO LAUNDERING RING
Across all raids, they recovered roughly 1.05 million HKD, around 134,000 in other currencies, plus over 560 ATM cards and several phones.
Lo added that more than 10 million HKD of the laundered money tied back to 58 separate fraud cases. Fraud‑related crimes in Hong Kong rose by over 12% in 2024, with more than 10,000 people arrested.
Shell account holders made up over 70% of those arrests. Fraud now accounts for nearly half of the city’s 95,000 criminal cases last year.
Senior Inspector Tse Ka‑lun of the Commercial Crime Bureau said friends and family often lend their bank accounts to criminals. He’s urging judges to hand down stiffer sentences.
Current law allows up to 14 years in jail and a fine of up to 5 million HKD. But in the past two years, more than 100 convicted launderers got extra time—between three and 18 months added.
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