Hong Kong Customs uncovered a local money-laundering syndicate that used cryptocurrency to handle illegal funds totaling HK $ 1.2 billion ($ 155 million), according to the South China Morning Post.

Within the framework of the case, four were arrested, including the alleged leader of the group.

This is the first time a group has been disclosed in Hong Kong that used cryptocurrency to launder money and hide the sources of criminal assets, the police superintendent noted.

Law enforcement officials say the syndicate laundered about HK $ 880 million ($ 113 million) using cryptocurrency between February 2020 and May 2021 alone.

An investigation found that over 60% of the funds were transferred through bank accounts in Singapore within 15 months, prompting local authorities to seek law enforcement assistance in tracing the money and its final recipients.

The syndicate is also suspected of laundering an additional 350 million Hong Kong dollars ($ 45 million) in the traditional way using the accounts of fly-by-night firms.