Hong Kong authorities have arrested 12 individuals related to a cross-border criminal organization. The group is accused of laundering over 15 million USD through cryptocurrency and hundreds of fake bank accounts.
The Hong Kong Police Force (HKPF) announced that the suspects—nine males and three females aged 20 to 40—were arrested during coordinated raids across multiple districts.
Hong Kong Discovers Cryptocurrency Organization Operating 550 Shell Accounts
According to a report by South China Morning Post, the organization is accused of transferring over 118 million HKD (15 million USD). This money was transferred through over 550 fake bank accounts and virtual asset platforms.
Investigators revealed that the suspects obtained or rented personal information and bank accounts from local residents and mainland residents to execute their plan.
During the raids, police seized over 1.05 million HKD (134,000 USD) in cash, 560 ATM cards, multiple mobile phones, and numerous financial documents.
Police said the group targeted individuals from mainland China. They helped these individuals open shell accounts in both traditional and digital banks in Hong Kong.
"The organization established an operational base in an apartment in Mong Kok from mid-2024. Recruits from the mainland were housed there and waited for instructions to process illegal funds as they flowed into shell accounts," Chief Inspector Lo Yuen-shan said.
Once the money entered these accounts, it was transferred through virtual asset exchanges to conceal its origin. The suspects have been formally charged with money laundering conspiracy.
This crackdown adds to the growing list of enforcement actions aimed at curbing cryptocurrency-related crime in the region.
In October 2024, Hong Kong police were reportedly to have broken up a similar cross-border operation. That organization had defrauded victims of over 360 million HKD (46 million USD) through romance scams and investment frauds.
That group recruited university graduates with technology backgrounds and collaborated with foreign cybercriminals to build fake investment platforms.
Authorities said these efforts support the city's ambition to become a global virtual asset center and protect its residents.
In a recent meeting with Qatari officials, Hong Kong legislator Johnny Ng emphasized the city's potential to lead in Web3 and cryptocurrency innovation.
Ng highlighted Hong Kong's "one country, two systems" model, legal infrastructure, and international human resources as key advantages. He said these are important factors for promoting global expansion and supporting business development.
"I believe Hong Kong's 'one country, two systems', combined with professional services, international talent, and a solid legal framework, will certainly accelerate its role in global connectivity, while supporting mainland and local businesses to quickly expand overseas," he said.
