Hong Kong police have arrested 12 individuals linked to a $15 million crypto money laundering operation. The syndicate, which was dismantled on May 15, involved over 500 bank accounts and was operating both in mainland China and Hong Kong. The suspects allegedly recruited others to open these bank accounts to facilitate the laundering of proceeds from fraud cases, which were then converted into cryptocurrency at exchange shops. The police conducted surveillance and arrested individuals during transactions to convert cash into crypto, seizing significant amounts of cash and multiple ATM cards. More than $1.2 million of the laundered funds was connected to reported fraud cases. Authorities have noted a 12% year-on-year increase in fraud-related arrests, responding to a growing trend involving the use of stooge accounts for laundering. This bust reflects ongoing efforts as Hong Kong implements a regulatory framework for the crypto sector.

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