BlockBeats news, on September 27, according to the report of Sing Tao Daily, the Criminal Investigation Department of Hong Kong Wong Tai Sin Police District conducted a law enforcement operation codenamed 'Lien Dou' from September 19 to 26, successfully dismantling a local group specializing in money laundering using Cryptocurrency, arresting 25 people, involving at least 39 fraud cases, with a total amount of over 7 million Hong Kong dollars. Senior Inspector Mak Ning Fung of the Criminal Investigation Department of Wong Tai Sin Police District described the case, stating that the 25 arrested individuals, 18 men and 7 women, aged between 19 and 65, claimed to have various occupations such as construction workers, waiters, or unemployed. The arrested individuals include a mastermind, three key members, and 21 puppet account holders, suspected of 'obtaining property by deception' and 'money laundering' crimes. At the mastermind's location, over 20 electronic devices were seized, as well as two Cryptocurrency cold Wallets believed to be related to the case. Through in-depth analysis, the police found that the local Cryptocurrency Money Laundering group was involved in at least 39 fraud cases across Hong Kong. The group began operating in May 2023, using puppet information to open bank accounts and Cryptocurrency exchange accounts. The detailed division of labor among key members involved using various types of fraud to deceive victims, depositing money into designated puppet bank accounts, and then some key members immediately using the same puppet information to open exchange accounts for user transactions (i.e., P2P transactions), using criminal proceeds to purchase Cryptocurrency. Subsequently, other key members transferred the 'cleaned' Cryptocurrency to the mastermind's exchange account through the same platform or cold Wallet. In addition, the police found that the accounts opened by the group on the exchange platform were all established under shell companies, further concealing their identities. This 'money in and currency out' method of money laundering, and the use of shell companies to hide identities, posed a certain challenge to the police investigation. Inspector Wen Wenkin added that the group involved in the case was mainly related to 39 cases of online investment fraud, online job-seeking fraud, and fake customer service fraud. There were a total of 39 victims, 23 men and 16 women, aged between 19 and 72, with occupations such as clerks, students, and housewives. The total amount of losses exceeded 7 million Hong Kong dollars, with individual losses ranging from 3000 Hong Kong dollars to 1.6 million Hong Kong dollars. The largest single loss was in an online investment fraud case, where the victim was a 38-year-old female salesperson who met the fraudster on a social platform and was later lured to invest in a false website claiming to offer higher returns on Cryptocurrency than other platforms. The female victim believed it to be true and subsequently transferred nearly 1.6 million Hong Kong dollars to 9 designated bank accounts of the fraudster within a month. The female victim tried to withdraw the funds multiple times without success and eventually reported it to the police for help. The fraudulent method involved was precisely the method of 'claiming to involve Cryptocurrency.' Additionally, there were also reports of criminal groups setting up fake Virtual Money exchange shops, claiming to offer preferential benefits for buying and selling Cryptocurrency, luring victims into large cash transactions, which were actually thefts of victims' cash. Therefore, when engaging in virtual asset investment or trading, it is advisable to first verify whether the relevant platforms have been licensed on the Securities and Futures Commission website, and choose reputable trading platforms. If selecting physical stores, it is also important to choose reliable stores, such as whether the store operates daily and its ratings, etc.