• Hong Kong authorities arrested four men suspected of involvement in a money laundering syndicate that involved HK$1.2 billion (US$155 million), the South China Morning Post reported on Thursday.
• The men, aged 24-36, were arrested last week during operation “Coin Breaker,” SCMP cited a Hong Kong Customs official as saying.
• It is alleged the syndicate operated from February 2020 to May this year, with shell companies using e-wallet accounts and a local platform to trade in “privacy coins” issued by Tether Ltd.
• Stuart Hoegner, General Counsel for Tether told CoinDesk via Telegram on Thursday his company did not issue so-called “privacy coins.”
• It is the first money laundering case involving cryptocurrency detected by the city’s Customs authorities, according to the report.
• Money laundering in Hong Kong carries a maximum penalty of 14 years in prison and a fine of up to HK$5 million (US$643,000).

UPDATE (July 15, 2021, 6:15 UTC): Adds comments from Stuart Hoegner