U.S. Department of Homeland Security: "Chinese group launders money using virtual assets and gift cards"… $1 billion detected

Homeland Security Investigations (HSI), under the U.S. Department of Homeland Security, detected signs that Chinese organized crime groups were laundering funds in the United States using virtual assets (cryptocurrency) and gift cards.

On the 18th (local time), Bloomberg reported that HSI uncovered a large-scale money laundering network using U.S. retailers, mobile wallets, and virtual assets through the 'Project Red Hook' operation. They obtained stolen gift card numbers to purchase high-value electronics such as iPhones and laptops, shipped them to China for resale, converted the proceeds into cryptocurrency, and laundered the funds through Chinese payment platforms.

Adam Parks, deputy director of HSI, said, "The ultimate goal is to cash out proceeds from crime," adding, "The trade structure between the United States and China provides an outlet for this." Authorities confirmed about $1 billion (approximately 1.42 trillion won) in losses over the past two years and also found indications that stolen card numbers were being traded for cryptocurrency via Tencent's WeChat app.

The criminal groups also used SMS phishing to steal victims' payment information. They sent messages disguised as toll or postage notices to prompt victims to enter card information, immediately registered the cards in mobile wallets, and used them to pay for goods.