Hong Kong Blasts Tether Money Laundering Ring To Launder Millions – Bitcoin News
Hong Kong authorities have arrested four people suspected of laundering a total of $ 155 million through cryptocurrency wallets and bank accounts. City customs said this was the first time virtual money had been used to launder dirty cash.
Money laundering syndicate recycles $ 155 million in crypto and fiat transactions
The criminal group allegedly processed illegal funds totaling 1.2 billion Hong Kong dollars (155 million US dollars), Hong Kong customs announced on Thursday. In an operation code-named “Coin Breaker”, officials arrested the alleged ring leader and three other residents of the Chinese Special Administrative Region.
The money laundering consortium started its criminal activities last year using three mailbox companies. The companies opened e-wallet accounts with an unnamed digital asset platform to trade the stablecoin tether (USDT). Authorities believe that the system’s thought leader convinced the others to register as executives of the three companies.
“Our investigation found that the syndicate laundered approximately HK $ 880 million (US $ 113 million) through the cryptocurrency between February 2020 and May 2021,” said Senior Superintendent Mark Woo Wai-kwan of the Crimes Investigation Bureau. Quoted by the South China Morning Post, the official added that the coins involved in the transactions came from around 40 e-wallet accounts.
According to Superintendent Grace Tang Wai-ngan, crypto worth 150 million Hong Kong dollars of the total has been transferred to more than 20 e-wallets. The remaining 730 million Hong Kong dollars were disbursed and deposited into eight bank accounts of the three mailbox companies.
In just six months, around 500 cryptocurrency transactions were processed through the companies’ wallets, she said. Those transactions averaged 400,000 coins, or more than 3.1 million Hong Kong dollars (about $ 400,000), with the largest being worth $ 20 million in crypto.
Suspects allegedly launder $ 350 million through regular Fiat channels
In addition to the 880 million Hong Kong dollars cleared through cryptocurrency, officials claim that another 350 million Hong Kong dollars ($ 45 million) were laundered conventionally. Funds were transferred to the same eight bank accounts through 100 other accounts, including business accounts from 18 different Hong Kong-registered mailbox companies.
A total of 1.08 billion Hong Kong dollars (nearly $ 140 million) ended up being deposited into more than 200 bank accounts. This included personal accounts and accounts controlled by money changers, investment companies and real estate firms in Hong Kong and other jurisdictions.
Investigators found that 60% of the funds were sent through bank accounts in Singapore, where Hong Kong authorities asked law enforcement officials to support their efforts to track the money. Hong Kong Customs is now planning to step up its collaboration with other government agencies and regulators to combat the use of cryptocurrency in money laundering crimes.
Investigation into the origin of the funds, the original senders and ultimate recipients of the laundered money continues. The four suspects were released on bail, according to the South China Morning Post. Their money laundering offenses could result in a maximum prison sentence of 14 years and a fine of 5 million Hong Kong dollars (approximately $ 640,000).
What do you think of the Hong Kong money laundering case? Let us know in the comment section below.
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