Hong Kong’s customs authorities have arrested a group of four men allegedly involved in a cryptocurrency money laundering scheme worth about $155 million. The authorities revealed that this bust, called Operation “Coin Breaker”, is the region’s first crypto money laundering case.
In a press briefing, Mark Woo, the Head of the Syndicate Crimes Investigation Bureau of Customs, explained that the men laundered more than $113 million via the Tether stablecoin. They then laundered the leftover $42 million using fiat money.
With the largest market cap of all stablecoins, Tether sees up to 40 million coins transferred daily on crypto exchanges. Nevertheless, Tether has been under close examination as authorities are concerned that the number of coins moved daily is not backed by enough cash.
The authorities disclosed that the investigation exposed 40 different wallets linked to the money laundering scheme. They also seized phones, computers, and bank statements related to the incident. The men made virtual currency transactions via local banks and then processed the funds through crypto transfers and remittances. Authorities claim that this group operated for more than 15 months and transferred over 60% of the funds to banks in Singapore over this period.
A spokesperson for the customs authorities said:
“The investigation is ongoing. All arrested persons have been released on bail pending further investigation, and the likelihood of further arrests is not ruled out.”
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