Hong Kong Siblings Face Jail Time for Laundering Money Through Different Platforms

Hong Kong Siblings Face Jail Time for Laundering Money Through Different Platforms

Hong Kong Police arrested two siblings on the claims of money laundering. The two residents were accused of using multiple methods, including crypto platforms, for washing over HK $380 million ($ 48.7 million).

Hong Kong Police Arrests Siblings for Money Laundering

The Hong Kong police have arrested two residents for laundering money amounting to $48.7 million. The two are siblings, and they used their bank accounts and a crypto exchange platform to wash the cash.

The police force searched the residency of the siblings- a sister and a brother to ascertain their claims. The two are said to have opened bank accounts with various financial organizations in the city. They also opened accounts on an undisclosed crypto exchange platform to launder the money whose source is yet to be identified.

The defendants were later released on bail. The customs officials did not rule out more arrests regarding the money laundering case. According to Chinese law, the two are facing a maximum fine of 5 million Hong Kong dollars or $641,000. The law also states that the penalty is accompanied by 14 years of jail time and confiscation of the laundering proceeds.

It’s not the first time Hong Kong customs officials have arrested people for money laundering. In July 2021, the officials arrested four people for laundering about $113 million using crypto platforms. The group had washed the money for 15 months using shell companies and 40 different USDT wallets.

Crypto Scams and Illegal Use Cases Increase as The Year Approaches Its End

As the year approaches its final days, the cases of illegal crypto uses, scams, and cyberattacks are increasing exponentially. Since November, many people have been arrested for the same while several crypto platforms have reported cyber attacks. The regulators are also working around the clock to formulate frameworks to govern these assets and reduce such abuses.

This month alone, crypto platforms like Bitmart, Badger DAO, Mono X and AscendEx have lost millions of dollars to hackers. Bitmart lost Altcoins worth over $190 million and made an effort to refund its users using its reserve unit. Mono X also lost tokens worth about $31 million, while BadgerDAO lost about $51 million in a similar attack. Ascend Ex is also reported to have lost $80 million by exploiting their crypto wallets.

The authorities have tried to warn investors about the increasing scam rates all year long. According to reports, crypto scams are up by over 80% in 2021 alone. A total of $7.7 billion was lost to scammers and hackers throughout the year. As a result, multiple governments are currently discussing creating protective regulations for investors. These regulations will cover investors’ rights and abolish bad players like money launderers, scammers and hackers from the crypto sphere.


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