Hong Kong Shuts Down $150M+ Crypto Syndicate
Main page News, China, Cryptocurrency, Money Laundering, Stablecoins
Hot topic
July 15, 2021

Hong Kong Customs has arrested four men for an alleged money-laundering syndicate, which involved ~$155 million in cryptocurrencies, the South China Morning Post (SCMP) reports.

Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.

As a result of the so-called "Coin Breaker" operation four men aged between 24 and 33 have been arrested. SCMP says over 60% of the funds had been transferred through bank accounts in Singapore February 2020 through May 2021.

Hong Kong's Pro-Democracy Tabloid to Avoid Censorship with Blockchain

Head of Syndicate Crimes Investigation Bureau of Customs, Mark Woo, said the scheme involved the tether (USDT) stablecoin. Approximately $112 million of the sum involved cryptocurrency trading in ~40 digital wallets. However, it remains unclear what banks have been involved. This is the first time Hong Kong Customs detected a money laundering case, which involved cryptocurrencies and stablecoins.

Earlier in May, the Hong Kong authorities moved toward banning cryptocurrency exchanges to non-professional investors. The government plans to oblige all local cryptocurrency exchanges to receive a license from the Securities and Futures Commission (SFC).

Moreover, as per government proposals, the licensed exchanges will only be allowed to professional investors. The government will proceed to prepare the amendment bill based on the consultation conclusions, with a view to introducing the amendment bill into the Legislative Council in the 2021-22 legislative session.

Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.

Read also:
Please describe the error