Hong Kong busts $190m crypto money laundering ring: report

Hong Kong customs has dismantled a sophisticated money laundering ring that processed over $190 million through cryptocurrency transactions and more than 200 bank accounts.

Hong Kong customs authorities have dismantled a money laundering operation that funneled HK$1.5 billion (about $192 million) in cryptocurrency and suspected criminal proceeds through more than 200 bank accounts, the South China Morning Post reported, citing sources familiar with the matter.

The report states that as a result of the operation, four suspects were arrested, including a man who worked as a secretary for three front companies, his father and a close female relative.

The alleged family-run syndicate used nearly four dozen bank accounts linked to six shell companies to collect and launder suspicious funds originating from South Korea. Over a two-year period from August 2020 to August 2022, these accounts processed more than 2,000 transactions, the report said.

Inspector Poon Yip-kan of the customs financial investigation bureau reported that the illicit funds were quickly transferred through company accounts and distributed to 180 third-party bank accounts to conceal their origins. Among the accomplices was a taxi driver who reportedly earned about $9,000 a month to launder $38.4 million through cryptocurrency on overseas platforms. The report did not specify which platforms were used.

Authorities were able to freeze $280,000 in related accounts, according to SCMP, but the full extent of the frozen funds remains unclear. The suspects were released on bail pending further investigation, and authorities say additional arrests are possible as they continue to monitor the flow of illicit funds.