A 34-year-old mainland Chinese woman was sentenced to 47.5 months in prison by Hong Kong's District Court on July 23 after pleading guilty to four counts of money laundering. The court accepted the prosecution's request for a 25% sentence increase due to the cross-border nature and severity of the crime.
Digital Bank Mule Accounts and Crypto OTC as Laundering Tools
The woman traveled to Hong Kong in 2024 and opened multiple mule accounts at several digital banks. These accounts were then handed over to a cross-border criminal syndicate to receive proceeds from fraud. Once the funds arrived, she withdrew cash and visited local virtual asset over-the-counter (OTC) shops to purchase cryptocurrencies, effectively breaking the money trail. Between August and September 2024, the defendant laundered approximately HK$9.29 million using this method. The judge imposed a 25% surcharge on the base sentence, resulting in a 47.5-month term.
Police Operation 'Sink' Uncovers HK$230 Million Laundering Ring
The case stemmed from a joint data analysis by Hong Kong police and banks in August 2024. Investigators traced 43 local bank accounts that had received about HK$18 million from 34 job scams, phone scams, and investment frauds between June and September 2024. Further analysis showed the syndicate had conducted large crypto OTC trades through these accounts, with total suspected laundered proceeds reaching a staggering HK$230 million. On September 12, 2024, the Commercial Crime Bureau launched Operation 'Sink', arresting 13 suspects including the woman.
Police Warning: Renting Out a Bank Account Can Bring 14 Years in Jail
As digital banking and virtual assets become more common in Hong Kong, police urge residents and visitors never to lend, rent, or sell their bank or e-payment accounts. Under Hong Kong law, those who assist fraud rings can face up to 10 years for obtaining property by deception; renting or selling an account constitutes money laundering, punishable by a maximum fine of HK$5 million and 14 years' imprisonment. The message is clear: the penalties far outweigh any quick cash benefit.