Mainland woman sentenced again by Hong Kong court for opening puppet account! Bought cryptocurrencies via OTC, laundered 9.29 million in two months, pleaded guilty and sentenced to 47.5 months in prison

According to the latest ruling from the Hong Kong District Court, a 34-year-old woman from Mainland China was involved in opening digital bank puppet accounts in Hong Kong and using currency exchange shops to purchase cryptocurrencies, assisting cross-border criminal groups in laundering up to HKD 9.29 million in just two months. The defendant today pleaded guilty to four money laundering charges in the District Court, and the court accepted the prosecution's application for a 25% increased sentence, ultimately sentencing her to 47.5 months in prison.
(Background: Taiwan’s largest crypto money laundering case — suspect Shi Qiren of BiXiang Technology granted bail of HKD 20 million, involved in fraud of HKD 1.27B, with over HKD 2.3 billion in financial flows)
(Additional background: Shaolin Temple abbot using Bitcoin for money laundering, first-instance sentence of 24 years)

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• Digital bank scams, OTC buying cryptocurrencies to hide fund flows
• Code-named "沉擊" ("Deep Strike") operation, criminal group involved in laundering up to HKD 230 million
• Police sternly warn: renting accounts can lead to up to 14 years in prison and a HKD 5 million fine

Hong Kong’s law enforcement has made significant progress in combating cross-border money laundering using virtual assets. A 34-year-old woman from Mainland China was involved in collaborating with cross-border criminal groups to open multiple puppet accounts at local digital banks and, within just two months, launder nearly HKD 10 million in illicit gains. Today (23rd), she was formally sentenced to prison after pleading guilty in the Hong Kong District Court. The case exposes how criminal groups are increasingly using virtual asset OTC shops as a new tool to disguise fund flows.

Digital bank scams, OTC buying cryptocurrencies to hide fund flows

The case revealed that the woman had previously traveled to Hong Kong and opened multiple puppet accounts at several local digital banks. These accounts were later used as money laundering tools by the cross-border criminal group. After receiving scam proceeds, the defendant would transfer the funds to her own bank accounts to withdraw cash, then go to local virtual asset exchange shops to buy cryptocurrencies, attempting to use "fiat-to-virtual asset" layering techniques to thoroughly conceal the origin and destination of the criminal funds.

The court noted that between August and September 2024, the defendant laundered a total of HKD 9.29 million in suspected criminal proceeds through these methods. Today, she admitted to four charges of "dealing with property known or believed to represent proceeds of indictable offenses" (commonly known as money laundering). Due to the seriousness of the case and its cross-border elements, the prosecution applied for a heavier sentence, which was accepted by the judge. The sentence was increased by approximately 25%, resulting in a final term of 47.5 months (about 3 years and 11.5 months).

Code-named "沉擊" ("Deep Strike") operation, criminal group involved in laundering up to HKD 230 million

The case’s uncovering was the result of close cooperation between Hong Kong police and local banking industry. In August 2024, police used big data analysis of multiple suspicious bank accounts to trace and expose this cross-border money laundering group. Investigations revealed that from June to September 2024, the group used 43 local bank accounts to collect illicit funds from 34 scams, including employment fraud, phone scams, and investment scams, totaling about HKD 18 million.

However, further analysis of the fund flows uncovered a more shocking secret: the group frequently conducted high-volume OTC cryptocurrency transactions through local bank accounts, with suspected criminal proceeds totaling as high as HKD 230 million. On September 12, 2024, the Hong Kong Commercial Crime Bureau’s Fraud Investigation Unit launched a decisive operation codenamed "沉擊" ("Deep Strike"), successfully arresting 13 suspects, including the Mainland woman.

Police sternly warn: renting accounts can lead to up to 14 years in prison and a HKD 5 million fine

As virtual assets and digital banking become more prevalent in Hong Kong, money laundering methods are becoming increasingly technological. The Hong Kong police issued a stern warning. They remind citizens and visitors not to rent, lend, or sell personal bank accounts or electronic payment accounts out of greed. If such accounts are used by criminal groups for money laundering or receiving scam proceeds, the account holders will face severe legal consequences.

Under current Hong Kong law, assisting scam groups may violate "obtaining property by deception," with a maximum penalty of 10 years’ imprisonment; renting or selling accounts is also considered money laundering. Convicted offenders could face fines up to HKD 5 million and up to 14 years in prison. Do not test the law.