The Hong Kong Police Force has arrested four men and six women, suspected of conspiracy to collude with foreign forces and inciting riots. The detainees are believed to be connected with the 612 Humanitarian Relief Fund (612 Fund), which the national security police have been investigating since September 2021.
The 612 Fund was established in June 2019, during the anti-extradition law amendment bill protests, with the aim to provide financial support to individuals who encountered violence, were arrested, injured, or threatened during this volatile period. However, the fund faced complications while navigating the regulations set forth by the Societies Ordinance. Trustees and former secretaries of the fund were convicted previously for failing to register or seek exemption within the stipulated timeframe, which led to a series of arrests performed in May 2022 and further escalated with an arrest in November as reported by state-funded news outlet Wenweipao.
As of May 2021, the 612 fund had accumulated donations worth 236 million HKD. The expenses covered through these donations ranged from legal fees, medical expenses, to psychological support for the targeted group. In spite of this, the 612 Fund had to cease operations in August 2021 due to liquidation procedures initiated by the company providing financial services to them.
Amidst these events, the Financial Services and the Treasury Bureau (FSTB) and the Legislative Council of Hong Kong are working to establish regulations on crowdfunding. The FSTB initiated a consultation period in December 2022, with a hope that the proposed regulatory measures will deter unlawful activities carried out under the pretext of crowdfunding. Legislator Elizabeth Quat had already addressed this issue in September 2021, highlighting the inadequacies in current laws to regulate the 612 Fund.
The broader implications of these arrests and their connection with the 612 Fund raise critical questions on the predicaments posed by crowdfunding in the current regulatory climate. Organizations and corporations partaking in similar activities or intending to do so must closely track updates in the regulatory framework to ensure compliance and mitigate potential legal liabilities. The full text of the news can be found in detail here.