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Cross-border money laundering group laundered HK$88 million, 8 people arrested

CointimeCointime2024/05/14 09:28
By:Cointime

The Hong Kong Police Commercial Crime Bureau locked onto a cross-border money laundering group in November 2023. The investigation found that the group recruited mainlanders to open puppet bank accounts in Hong Kong from September 2023 to March 2024. They used various types of fraud, such as telephone scams, nude chat scams, investment scams, and job scams to defraud victims. The victims were instructed by the fraudsters to deposit the stolen money into the puppet accounts controlled by the criminal group. The group would then withdraw the stolen money from the puppet accounts in cash and buy cryptocurrencies on the over-the-counter (OTC) market. They would also open accounts on overseas cryptocurrency platforms with false identities and deposit the cryptocurrencies purchased with the stolen money before transferring them to multiple cryptocurrency wallets to launder the criminal proceeds. The police also pointed out that the group used 72 local puppet bank accounts to launder more than HKD 88 million in criminal proceeds, of which HKD 6.7 million was related to 48 fraud cases. As of yesterday, the police arrested 7 men and 1 woman aged between 26 and 51 for conspiring to launder black money. They claimed to be a lifeguard, photographer, telephone programmer, salesperson, and unemployed. Six of them were core members, and two were puppet account holders.

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