2 held in Hong Kong over laundering HK$1.15 billion in case involving stablecoin

Hong Kong customs officers have arrested two men who allegedly smuggled cash out of the city and made suspicious transactions, including with stablecoins, to launder HK$1.15 billion (US$146.5 million).

A Customs and Excise Department spokesman said on Tuesday that an investigation into the pair found they had repeatedly smuggled cash out of the city. The suspects also made transactions using stablecoins and regular currency, with officers finding the source of funds to be questionable.

The activities of the pair, a 37-year-old local and a 50-year-old non-local, were inconsistent with their background and financial status, the spokesman added.

Stablecoins are cryptocurrencies that are pegged to a reference asset, typically a fiat currency such as the US dollar.

Customs officers raided four residential premises and two companies on Tuesday morning, seizing items believed to be linked to the case, including mobile phones, tablets, and bank cards.

The two suspects, who identified themselves as self-employed and unemployed, were arrested on suspicion of money laundering under the Organised and Serious Crimes Ordinance.