Hong Kong police say they have busted a gang that was using cryptocurrencies to launder money.
Six people, including a Hong Kong high school student, were arrested in an operation against a cross-border group that laundered more than HK$100 million ($12.7 million) of suspected criminal proceeds, police said Friday.
Police said the student was suspected of using cryptocurrency accounts to trade cryptocurrencies, concealing the source and flow of criminal proceeds, and helping the gang launder illegal funds.
Senior Inspector Chu Mingwen of Hong Kong's Anti-Drug Squad said the digital currencies were transferred to virtual wallet accounts abroad to avoid detection.
He added: "Investigations revealed that the group earned more than HK$1 million in criminal proceeds every day and laundered more than HK$100 million in three months."
Security forces began investigating the group in late April based on intelligence they received.
The group opened bank accounts in China to collect criminal proceeds obtained through various scams. Members then used debit cards to purchase valuable items such as gold jewelry and watches in Hong Kong to launder the illegal funds.
Chu said the gang used the proceeds from the sale of valuables and purchased cryptocurrencies, creating an additional layer of transactions to hide the illicit financial flows.
