Hong Kong police track cryptocurrency to freeze fraud and human trafficking funds; a fraud "middleman" sentenced to 56 months in prison

Odaily News Hong Kong's Court of Appeal yesterday rejected a sentence reduction application from Ma Zhihao, the mastermind of a fraud and human trafficking scheme, upholding the original 56-month prison sentence. During the investigation, Hong Kong police traced criminal funds through blockchain and cryptocurrency transaction records, identifying key evidence of ransom payments and criminal proceeds.

It is reported that the family of one victim paid approximately 9,527 Tether (USDT) tokens to a cryptocurrency wallet designated by the criminals. Blockchain tracing records conclusively showed that 8,127 USDT flowed into an exchange account registered under Ma Zhihao's real name and Hong Kong ID card, subsequently converted into approximately HK$63,000 and transferred to his personal HSBC bank account, serving as critical evidence of his involvement in the crimes and receipt of proceeds. The Court of Appeal noted that had it not been for the District Court's 7-year sentencing cap, the defendant would have faced a significantly heavier penalty. (Caixin)