Hong Kong Customs has cracked a Money Laundering case involving 1.15 billion HKD! Two men used stablecoin to launder large amounts of cash out of the country.

On July 22, the Hong Kong Customs announced the bust of a money laundering case involving up to HKD 1.15 billion. During the money laundering process, the criminals used both cash and stablecoins. Currently, two men involved in the case have been arrested. (Background: Can the USDT blacklist really stop money laundering and terrorist financing? On-chain data analysis: Nearly 90% of stablecoins were transferred before being frozen) (Additional background: Fraud victims mocked by police 'how are you still alive' mother and daughter collapse and take their own lives! Behind this is the old jewelry merchant's USDT money laundering scheme) According to the Sing Tao Daily, the Hong Kong Customs announced on July 22 the bust of a money laundering case involving up to HKD 1.15 billion. During the money laundering process, the criminals used both cash and stablecoins. Currently, two men involved in the case have been arrested. Cash smuggling paired with stablecoins The Hong Kong Customs pointed out that a 37-year-old local man and a 50-year-old foreign man are suspected of taking large amounts of cash out of the country and then frequently trading stablecoins to 'clean' the funds. Their backgrounds and the flow of funds are significantly inconsistent, triggering an investigation. Law enforcement officers raided four residences and two companies, thoroughly searching mobile phones, bank cards, and electronic wallet records. The case is still expanding evidence collection, and the two have been released on bail pending trial. It is worth noting that similar methods have recently been common. In May, Customs uncovered a virtual asset money laundering network worth HKD 3.5 billion; in February, a cross-border case involving the Indian market worth HKD 14 billion was discovered. Stablecoins as shortcuts for money laundering Stablecoins are pegged to fiat currencies, have low volatility, and allow for quick cross-border transfers, which perfectly meet the needs of money laundering. Criminals often convert cash into USDT and then use mixers or cross-chain bridges to slice and convert funds, significantly increasing the difficulty of tracking. In China's 'Xing Kang Jia' Ponzi scheme and the illegal currency exchange case of 6.5 billion RMB in Shanghai, stablecoins played a central role. Additionally, the Financial Action Task Force (FATF) report indicates that in 2024, on-chain illegal activities are estimated to be about USD 51 billion; in the same year, the monthly trading volume of stablecoins once exceeded USD 30 trillion. The massive liquidity presents a tracking challenge for law enforcement agencies facing 'massive transfers completed in seconds.' Hong Kong's dual regulations and licensing system Legally, Hong Kong requires financial institutions to implement customer due diligence and suspicious transaction reporting under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, Chapter 615. More critically, the 'Stablecoin Ordinance,' which will take effect on August 1, mandates that any issuance, exchange, or custody involving 'designated stablecoins' must apply for a license; operating without a license constitutes a criminal offense, and exaggerated advertising and misleading investors are also prohibited. At the same time, the Securities and Futures Commission and the Monetary Authority are collaborating. The Monetary Authority focuses on risks in the banking system, while the SFC is responsible for setting standards for the encryption industry and requires licensed institutions to have sufficient capital, risk control, and disclosure mechanisms. Although DeFi and some unlicensed projects have not yet been fully regulated, authorities have clearly signaled 'license first, then innovate.' Related Reports From privacy evangelist to 'money laundering' defendant, Tornado Cash co-founder Roman Storm faces fate's verdict Czech Republic auctions Bitcoin linked to 'money laundering and corruption' with a USD 45 million outflow, Minister of Justice resigns, opposition calls for a vote of no confidence China cracks down on the 'Hyperliquid money laundering case': methods similar to James Wynn, deliberately losing money to launder to the counterparty <Hong Kong Customs busts HKD 1.15 billion money laundering case! Two men used cash to exit and stablecoins to clean up> This article was originally published by BlockTempo, the most influential blockchain news media.