According to a South China Morning Post reportHong Kong customs officials have apprehended three people in a massive HK$1.8 billion ($228 million) money laundering operation that exploited a crypto platform and bank accounts associated with shell companies.
The arrests were made following an investigation into suspicious activity involving “unusually frequent” and large transactions in bank accounts lacking tax records, import and export declarations and physical addresses.
The suspects allegedly used Tether
During the investigation, one of the accounts involved was found to be receiving large daily deposits of up to HK$39 million ($4.9 million) and facilitating 167 transactions.
Further examination revealed that two suspects allegedly manipulated HK$760 million, equivalent to 40% of the total funds, through a cryptocurrency platform, specifically Tether.
Florence Yeung Yee-tak, commander of the Customs Department’s Financial Investigation Division, cited alleged difficulties during the investigation. money laundering linked to cryptocurrencies due to their anonymity and “lack of jurisdictional restrictions”.
Yee-tak stressed that the law enforcement team relied on intelligence, capital flow analysis and financial investigations to gather evidence.
As part of a coordinated operation, customs officers targeted four residences, five businesses and two licensed money services businesses before making the arrests.
Trio arrested for laundering billions in crypto
The trio, made up of a 42-year-old woman and two men aged 48 and 60, are said to have created five companies and opened 18 local bank accounts between June 2021 and July 2022.
These companies were allegedly involved in more than 1,000 suspicious transactions, receiving funds from undisclosed sources.
Notably, the three suspects arrested did not know each other. The unemployed woman allegedly played a key role in money laundering, receiving transfers from various companies and cryptocurrencies. Exchanges.
The funds were transferred to other companies or to both suspects through licensed money changers.
According to the Customs and Excise Department, the woman managed HK$900 million in the market. illicit fundswhile the 60-year-old driver managed HK$300 million and the self-employed man managed HK$600 million.
Investigations revealed that the funds came from a crypto exchange platform and more than 200 local and foreign companies. The funds were quickly transferred to other entities once deposited in the shell companies’ bank accounts.
The shell companies allegedly operated in the business of mobile phone accessories, wholesale of machinery and vehicle spare parts. However, they engaged in commercial transactions unrelated to their declared sectors, including agricultural and food products, indicating their role as front companies.
The operation, called “Racer”, resulted in the seizure of mobile phones, company documents, stamps and transaction records. Customs confirmed that the origin and destination of the funds were still under investigation.
Although the main members of the union appear to have been apprehended, customs authorities do not rule out the possibility of further arrests.
All three suspects were arrested on charges of conspiracy to obtain the proceeds of a crime, commonly known as money laundering. They were released on bail but could face a maximum sentence of 14 years’ imprisonment and a fine of HK$5 million if convicted.
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