According to COINOTAG News report on September 27, the Hong Kong Wong Tai Sin District Criminal Division has completed a major law enforcement operation codenamed “Lian Dou”, which took place from September 19 to 26. This operation successfully dismantled a local money laundering group that utilized cryptocurrency as a medium. The authorities arrested 25 individuals involved in at least 39 fraud cases, accumulating illegal gains of over 7 million yuan.

Senior Inspector Mak Ning-fung reported that the detainees included 18 men and 7 women, aged between 19 and 65, with occupations ranging from construction workers to unemployed individuals. The suspects comprised the group’s mastermind, three core members, and 21 puppet account holders. Seized during the operation were over 20 electronic devices and two cryptocurrency cold wallets linked to the crimes. Extensive analysis revealed the group’s involvement in various frauds since May 2023, including opening bank and exchange accounts using dummy information.

Inspector Wan Man-kin added that the fraud cases were diverse, encompassing online investment, job search scams, and fake customer service frauds. The victims, 23 men and 16 women, aged 19 to 72, suffered losses exceeding HK$7 million. A notable case involved a 38-year-old female salesperson who was coaxed into transferring HK$1.6 million across nine designated bank accounts via a fraudulent crypto investment website. Her subsequent inability to withdraw funds led her to seek police assistance.

This complex “money in, coins out” laundering method, employing shell companies to shield identities, posed significant challenges for investigators. The police emphasize the importance of verifying whether trading platforms are licensed through the SFC website and opting for reputable platforms or reliable physical stores for cryptocurrency transactions.

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