Hong Kong safety detained 12 people, including two important known names, after revealing a large -scale crypto currency laundering operation in the city. It is claimed that these people laundered about 118 million Hong Kong (approximately $ 15 million US dollars) through traditional banks and crypto currency exchanges on the counter (OTC). Authorities, the money obtained from various fraud activities and the source of these money to conceal the crypto money announced. The suspects were between 20 and 42 years old; It was stated that there were different roles in the group.
Crypto Money Operation
The operation, which was carried out by the Hong Kong police Bureau of Commercial Crimes, was carried out with simultaneous raids at different points. In the operation, approximately 1.05 million Hong Kong dollar cash, more than 560 ATM cards, various electronic devices and financial documents were seized. In the investigations, there were findings that gang members used a large number of debit cards and imaginary accounts to make illegal income inevitable.
According to the information obtained by the police, the network has transformed the money transferred from the criminal offices abroad to OTC crypto currency offices in Hong Kong into crypto assets. This method, whose main purpose is to lose the trail of the money obtained from illegal activities into legitimate financial systems, puts security forces in a difficult position to fight crimes, especially in crypto assets.
Authorities’ explanations
Sources of information about the investigation, the gang activities in the region and illegal financial flows in the region reveal that crypto currencies have revealed a new dimension. In particular, a large number of debit and account use facilitates the concealment of illegal transactions and causes traditional monitoring systems to be insufficient.
Speaking on behalf of Hong Kong safety, the authorities pointed out the technical challenges of the operation, “the widespread of crypto currencies and crypto payments, creates new opportunities for criminals, which means more complex investigations for law enforcement officers,” he said.
“In the investigation, we have reached significant evidence and we are continuing the judicial process for suspects detained. Our struggle against criminal activities in crypto money markets will continue.”
Experts say that similar difficulties have emerged in the illegal use of crypto currencies in the metropolitan cities in Asia. The difficulty of monitoring crypto transfers on the boundary structure and the movements on Blockchain gives advantage to criminals. Such gangs can reduce visibility by dividing money movements between banks and offices into small amounts.
Hong Kong authorities, after the incident will increase the inspections on crypto currency exchanges and financial institutions, he said. In terms of the sector, it is thought that there may be an increase in the demands of regulations to increase the authentication of users and to increase the transparency of transactions.
In this case, the determination of the use of crypto money markets in illegal financial activities imposes new responsibilities to both financial institutions and law enforcement officers. The process requires the implementation of policies and techniques that are constantly updated against the diversity of laundering methods. Authorities say that developments are needed in legislation and digital monitoring technologies to prevent similar events in the future. Readers are informed about the safety of the platforms traded and that people should act more consciously about the importance of identity detection processes.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
