Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Hong Kong Customs Authorities Track Syndicate Using Cryptocurrency to Launder Money Overseas

Hong Kong Customs Authorities Track Syndicate Using Cryptocurrency to Launder Money Overseas

There was a syndicate using cryptocurrency to launder money. They moved almost $154M. Hong Kong customs has made some arrests.

A syndicate in Hong Kong, with links to cryptocurrency and money laundering, moved nearly $154 million in illegal funds before customs authorities shut it down in July.

The now-arrested ringleader and three others, using three shell companies, operated electronic accounts that traded in Tether digital tokens — early last year to May this year — before customs authorities got wind of what was happening.

The syndicate laundered $113 million using cryptocurrency. An additional $40 million was laundered through eight bank accounts using more conventional methods.

Suspicious transaction as the first clue


Grace Tang, superintendent, and head of customs’ financial investigation group said they flagged one of the shell companies for suspicious bank transactions, providing the first clue to the syndicate’s existence.

For three months, the customs team buried their heads into the dealings of the shell company, deeply examining numerous transaction records both in banks and cryptocurrency trading. In the process, they unearthed two more shell companies.

Tang’s team took hours to sift through acres of transactions related to money laundering before uncovering roughly 500 crypto transactions and nearly 1,800 suspicious bank transactions between the three shell companies.

The team waited for three months before pouncing on their targets.

Rise of money laundering activities worldwide


In recent years, law enforcement officials across the world have experienced an uptick in money-laundering activities using digital currencies.

The nature of cryptocurrencies and the pervasive anonymity of the parties involved make crypto an ideal ground for money laundering activities through banking systems and across borders.

Tang adds that virtual currencies are ideal for concealing the identities of the crypto buyers and sellers dealing directly with criminals. Compelling criminals to “hide the origin, flow, and final destination of illegal proceeds”, she said.

Trading in digital assets needs people to set up digital wallets to store cryptocurrencies. The wallet owners are then given public and private keys to control their digital wallets and initiate transactions when necessary.

Tang declares the anonymous and private nature of crypto wallet addresses makes it ideal for criminals to hide their illegal loot into legitimate financial markets. Then clean the dirty money via crypto trading — evading law enforcement in the process.

So, cryptocurrencies are a fertile ground for syndicates to thrive in. Because they can easily recruit third parties to launder dirty money on their behalf. Or worse, carry out peer-to-peer transactions.

Tang also said the global Covid-19 pandemic creates a decent ecosystem for money laundering activities to flourish. Thanks to travel restrictions barring syndicates from physically moving illegal money across borders.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
More Than 150,000 Followers for a Fictional Character: The New Influencers Are AI Creations
EU Prepares for War
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Druzhba Pipeline Incident Sparks Geopolitical Tensions
Cost of Opposition Leader Péter Magyar's Economic Plan Revealed
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
×