PanamaTimes

Friday, Mar 29, 2024

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.

Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
Apple warns against drying iPhones with rice
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Global Law Enforcement Dismantles Lockbit Ransomware Operation
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
The President of Argentina Javier Mile does not fly private, he flies commercial, with the citizens he represents. And they LOVE him for it.
Bitcoin Reaches $50,000 for First Time in Over Two Years
Belo Horizonte: Brazil's Rising Carnival Hotspot for 2024
In El Salvador, the 'Trump of Latin America' stuns the world with a speech slamming woke policing after winning a landslide election
Tucker’s interview with Putin is over 50M views on X within the first 5 hours.
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
President Nayib Bukele has proudly announced El Salvador's remarkable achievement of becoming the safest nation in the Western Hemisphere.
Former Chilean President Sebastian Piñera Dies in Helicopter Crash
This farmer seems to understand science a bit more than the event organizer, Klaus Schwab.
Facebook turns 20: From Mark Zuckerberg's dormitory to a $1trn company
The Coolest Dictator in the World" on the Path to Victory in El Salvador
Macron, France and fake news
Indian-Origin Man 'King' Arrested For Smuggling $16 Million Drugs Into US
Can someone teach Americans that not every person with slanted eyes is Chinese?
Europe's Farmers Feeding the People, Protesting Against Politicians Who Do Nothing for Their Country and Serve Only Themselves at Taxpayers' Expense
Paris Restaurant That Inspired 'Ratatouille' Loses $1.6 Million Worth Of Wine
Brazilian Police Investigate Bolsonaro's Son for Alleged Illegal Spying
Police in Brazil Raid Residence of Bolsonaro Associate Over Allegations of Illegal Spying
Border Dispute Escalates as Texas Governor Vows Increased Razor Wire
OpenAI Enhances ChatGPT-4 Model, Potentially Addressing AI "Laziness" Issue
The NSA finally acknowledges spying on Americans by acquiring sensitive data
Report Reveals Toxic Telegram Group Generating X-Rated AI-Generated Fake Images of Taylor Swift
US Border Patrol States 'No Plans' to Remove Razor Wire Installed in Texas
Bitcoin Experiences Approximately 20% Decline in Value
Klaus Schwab recently appointed himself as the Earth's "trustee of the future."
DeSantis Drops Out, Endorses Trump.
Nikki Haley said former President Trump is "just not at the same level" of mental fitness as he was while president in 2016.
Residents of a southern Mexican town set the government palace on fire in response to the police killing of a young man
Samsung Launches AI-Driven Galaxy S24, Ushering in New Smartphone Era
Judge Questions SEC's Regulatory Overreach in Coinbase Lawsuit
The Ecuador prosecutor who was investigating the television studio attack, has been assassinated.
Is artificial intelligence the solution to cyber security threats?
Vivek Ramaswamy suspends his US election campaign and endorses Trump.
Viral Satire: A Staged Satirical Clip Mistaken as Real Footage from the 2024 World Economic Forum in Davos
The AI Revolution in the Workforce: CEOs at Davos Predict Major Job Cuts in 2024
Ecuador Reports 178 Hostages in Prison Gang Standoff
The Startling Cuban Espionage Case That Has Rattled the US Government
Two Armed Men in Ecuador, Dressed as Batman and The Joker Storm the Streets.
Armed Gang Raids Ecuadorian TV Station Following State of Emergency Declaration
Anti-Democratic Canada: Journalist Arrested for Questioning Canadian Finance Minister on Support of Terrorist Group
Ecuador's 'Most-Wanted' Criminal Vanishes from Prison
Mexican Cartel Supplied Wi-Fi to Locals Under Threat of Fatal Consequences for Non-Compliance
Border Surge Leads to Over 11,000 Migrants Waiting in Northern Mexico
Outsider Candidates Triumph in Latin American Elections
As Argentina Goes to the Polls, Will the Proposal to Replace the Peso with the Dollar Secure Votes?
Fatal Shark Attack Claims Life of Boston Woman Paddleboarding Near Bahamas Resort, According to Police
×