Hong Kong Police Disrupt Virtual Currency Money Laundering Case, Involved Funds Reach 230 Million Hong Kong Dollars

BlockBeats News, March 5th. According to a report by Hong Kong 01, the Hong Kong police cracked a money laundering case involving the use of puppet accounts and virtual currency exchange shops. Two mainland Chinese men and women went to Hong Kong to open puppet accounts, used 43 local bank accounts to receive proceeds from 34 different fraud cases, and purchased cryptocurrency at virtual asset exchange shops to launder approximately 17.3 million Hong Kong dollars of criminal proceeds.

A funds flow analysis shows that the criminal group used local bank accounts to conduct cryptocurrency transactions, laundering up to 230 million Hong Kong dollars of illicit funds. The Hong Kong police charged the two individuals with 3 and 10 counts of money laundering respectively. After reviewing the case, the court approved heavier sentences sentencing the two individuals to 28 months and 43 months in prison, respectively.