Hong Kong Police Arrest 22 in Crypto OTC Money Laundering Probe Involving HK$150 Million

Hong Kong police arrested 22 people over a cross-border money laundering operation that allegedly handled more than HK$150 million in criminal proceeds over three months. According to Foresight News, citing Ming Pao, the group allegedly used cryptocurrency over-the-counter (OTC) shops as cover from August to October this year. Police said the group recruited mainland residents holding two-way permits to open bank accounts in Hong Kong, which were used to receive suspected criminal proceeds. Others withdrew cash from ATMs at different locations and banks to make the investigation more difficult. Runners then delivered the cash to an OTC shop operated by the alleged ringleader, where it was laundered through cryptocurrency transactions. Police conducted a two-day operation, code-named “Thunderbolt,” starting November 10. They searched a guesthouse, a subdivided flat and the OTC shop, arresting 21 men and one woman aged 21 to 54. The suspects included two Hong Kong residents and 20 mainland residents holding two-way permits. Police seized more than 1,600 bank cards, about HK$5.85 million in cash and more than 200 mobile phones.