Hong Kong customs officers have arrested two men who allegedly smuggled cash out of the city and made suspicious transactions, including with a popular stablecoin, 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 smuggled cash out of the city.
An insider said the suspects also made transactions using the stablecoin USDT 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.
USDT, operated by Tether, is the world’s largest stablecoin, with US$152 billion worth of tokens currently in circulation.
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.
