Hong Kong Court Sentences Telecom Fraud "Middleman" to 56 Months in Prison: Police Trace Cryptocurrency to Track Ransom Flow

On August 21, the Court of Appeal of the Hong Kong High Court yesterday dismissed the sentencing reduction application of Ma Zhihao, the mastermind of a telecom fraud and human trafficking scheme, upholding the original sentence of 56 months' imprisonment. During the investigation, Hong Kong police tracked criminal funds through blockchain and cryptocurrency transaction records, identifying key evidence of his receipt of ransoms and criminal proceeds.

It is understood that a victim's family paid approximately 9,527 Tether (USDT) to a cryptocurrency wallet designated by the criminals. Blockchain tracking records conclusively proved 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 crucial evidence of his involvement in the crime and receipt of proceeds. The Court of Appeal noted that had it not been for the seven-year sentencing cap of the District Court, the defendant would have faced a significantly heavier penalty.

[TechFlow]