Hong Kong Customs has blown up an illegal money laundering organization with up to $ 158 million worth of crypto. Police arrested four fraudsters and other members of the city’s first raid on digital assets. Most of the money is laundered through USDT stablecoin.

Hong Kong Customs arrested 4 people

This is the result of an investigation called “Coin Breaker”, in which customs officers arrested the suspected mastermind, 33 years old, and three other men, aged 24-36, who were directors of mailbox companies. The suspects charged the customers a commission of between 3% and 5%. The main suspect was arrested at his home in Tin Shui Wai, while three others were arrested in Mong Kok, Tuen Mun and Wong Chuk Hang.

The investigation found that more than 60% of funds were sent to Singapore bank accounts over a 15-month period, prompting local authorities to seek help from the “national island nation” law enforcement agencies. The investigation found that the organization laundered approximately $ 113 million between February 2020 and May 2021.

According to Mark Woo Wai-kwan, senior director of the Hong Kong Consolidated Criminal Investigation Division, money laundering operations took advantage of mailbox companies and USDT 40 wallets. The remaining amount, approximately $ 45 million, is said to have been laundered using conventional methods.

“This is the first time Hong Kong has taken action against a money laundering organization that uses cryptocurrencies to disguise the origin of assets,” he said.

While the police are still investigating the origin of the laundered funds, criminals are taking advantage of the privacy and security features of crypto, which make it difficult to trace.

In Hong Kong, money laundering carries a maximum penalty of 14 years in prison and a fine of HK $ 5 million ($ 643,640).

As money laundering organizations around the world increasingly resort to cryptocurrencies, Hong Kong Customs will step up collaboration with other law enforcement and regulatory agencies to fight crime and maintain security in order to maintain the city’s status as an international financial center.

However, the case pales in comparison to the city’s largest money laundering case ever, which saw $ 1.6 billion (HKD 13.1 billion) caused by a single 22-year-old mainland mastermind in 2012. This man laundered money through his bank account between August 2009 and April 2010 and made 4,800 deposits over an eight month period. In January 2013, he was sentenced to ten and a half years in prison.

The number of cases in mainland China has increased since the fourth quarter of last year, showing that criminals are openly using USDT for money laundering activities in the country.

Veronica

According to the AZCoin News

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