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

According to a report by Caixin, the Hong Kong High Court of Appeal rejected the sentence reduction application of Ma Zhihao, the ringleader of an online fraud and human trafficking syndicate, yesterday, upholding the original 56-month imprisonment term. During the investigation, Hong Kong police traced the criminal funds through blockchain and cryptocurrency transaction records, pinpointing key transactions involving his receipt of ransoms and illicit proceeds. It is reported that the family members of a victim paid approximately 9,527 Tether (USDT) to a cryptocurrency wallet designated by the perpetrators. Blockchain tracking records conclusively proved that 8,127 USDT flowed into an exchange account registered under Ma Zhihao’s real name and Hong Kong identity card. The assets were subsequently converted into approximately HK$63,000 and transferred to his personal HSBC bank account, serving as crucial evidence of his participation in the crimes and his financial gains. The Court of Appeal noted that, were it not constrained by the seven-year maximum sentencing limit prescribed for the District Court, the penalties faced by the defendant would have been significantly more severe.