Hong Kong Busts 458 In $470M Money Laundering Sweep
The Hong Kong police have undertaken a sweeping operation resulting in the arrest of 458 individuals across 314 cases. The operation, conducted this month, revealed a complex web of illicit financial transactions totalling HK$470 million (approximately $60 million USD), with about HK$1.1 billion (around $140 million USD) funnelled through both cash withdrawals and cryptocurrency transfers.
The Hong Kong police launched an anti-money laundering operation this month, arresting 458 people from 314 cases involving HK$470 million, of which about HK$1.1 was laundered through cash withdrawals and cryptocurrency transactions. https://t.co/RAW9izP5xQ
— Wu Blockchain (@WuBlockchain) August 27, 2023
Money Laundering Syndicates
The police operation targeted a wide range of money laundering schemes, encompassing various fraudulent activities such as online shopping scams, job search scams, investment scams, telephone scams, and even online romance scams. It is estimated that these criminal activities collectively generated around 4 million yuan in ill-gotten gains. Notably, the police were able to seize over 7 million yuan in criminal proceeds during the operation, further curtailing the syndicates’ financial resources.
Investigators revealed that several money laundering syndicates exploited vulnerable individuals, offering sums ranging from $300 to $1500 to persuade them to lend their bank accounts for the purpose of laundering funds obtained from different scams. In one instance, a group managed to launder up to RMB6 million over an eight-month period through the combination of cash withdrawals and cryptocurrency trades.
Vulnerable Victims Turned Culprits
Moreover, the police uncovered a puppet account controlled by triad members, which had received over $1 million from suspected illegal bets. This illicit operation spanned between January of the previous year and February of the current year, including a two-victim online shopping scam. The arrested suspects, totalling 458, comprised 330 men and 128 women, with ages ranging from 15 to 82. Strikingly, some of those apprehended were not only perpetrators but also victims themselves, ensnared by online romance or job scams. These individuals were coerced into sharing sensitive information such as Internet banking credentials, and in some cases, they sent their bank cards overseas to accomplices.
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In an intriguing twist, certain members of the criminal groups posed as helpful allies to their victims, enticing them to divulge personal details under the pretext of facilitating bank cash rebates. These unwitting victims were then duped into providing their identity cards and taking selfies, which were later misused to open virtual bank accounts for the purpose of laundering money.
