Hong Kong police smashed two money laundering groups involved in virtual currency, involving more than HK$200 million

BlockBeats news, on August 29, according to Oriental Daily, after in-depth analysis, the Hong Kong law enforcement department smashed three money laundering groups this month and successfully arrested 27 people. The investigating police officer said that in March this year, the Hong Kong law enforcement department received an investigation request from the Singaporean authorities, pointing out that more than 30 fraud cases occurred there, of which about 30 million Hong Kong dollars worth of fraudulent funds flowed into puppet accounts in Hong Kong after multiple transfers.

Hong Kong police officers immediately launched analysis and investigation, and then locked in the group involved, and found out that the group leader would accompany the puppet to open a bank account, and then use the account to receive the proceeds of crime from Singapore, and then launder the money through frequent transfers. It is believed that the amount of money laundered in the past year is as high as 100 million Hong Kong dollars.

In August this year, the Hong Kong law enforcement department launched an operation codenamed "Black Brain", arresting a total of 7 people including the mastermind, core members and puppet account holders of the group. At the same time, about HK$300,000 in cash and more than 60 bank cards were seized from one of the arrested persons, and the group was promptly prevented from transferring about HK$1.3 million in criminal proceeds from the account. Five of the arrested persons have been charged with the crime of "money laundering".

On the 19th and 20th of this month, the Hong Kong law enforcement department launched the "Wei Ge" operation to target another money laundering group. During the period, 8 men and 3 women (aged 21 to 55) were arrested on suspicion of "money laundering" and "conspiracy to launder money", and about HK$460,000 in cash, mobile phones and bank cards of the arrested persons were seized. The arrested persons were reported as insurance brokers, salesmen, drivers and construction workers. The case is still under investigation and more arrests are not ruled out.

Investigating police officers pointed out that the group was suspected of using at least 43 local bank accounts to collect more than HK$20 million in fraudulent funds and laundering about HK$200 million in criminal proceeds between March last year and May this year. In order to evade investigation, the group members used a large number of account transfers and made multiple cash withdrawals to purchase virtual currencies on local virtual asset trading platforms in an attempt to launder the black money.

In addition, the law enforcement department targeted a money laundering group in May this year and revealed that the group controlled 7 local bank accounts and laundered criminal proceeds from illegal online gambling platforms in Southeast Asia between May and July, involving HK$13 million. After the black money was transferred into the account, the group members would use bank ATMs to withdraw money to purchase virtual currencies. On the 27th and 28th, police officers conducted an operation codenamed "Ghost Warrior" and arrested 7 men and 2 women (aged 19 to 38) on suspicion of "money laundering" or "conspiracy to launder money", and seized HK$490,000 in cash, 37 mobile phones and 120 bank cards.

According to data, in the first half of this year, law enforcement agencies arrested 5,693 people for money laundering-related crimes, a 40% increase over the same period last year; 4,465 of them were puppet account holders, accounting for 78% of the arrested persons.