Hong Kong police stop $15 million cryptocurrency laundering scheme
Date: 2025-05-19 Author: Gabriel Deangelo Categories: IN WORLD
Law enforcement agencies in Hong Kong and mainland China have arrested 12 people involved in laundering funds using cryptocurrencies. Among them are nine men and three women. According to the police, the group was recruiting droppers who were used to open bank accounts. The money obtained through fraudulent transactions was transferred to these accounts, after which it was converted into cryptocurrency through exchange platforms.
The operatives conducted surveillance of the participants in the scheme and detained two men when they left a rented apartment in the Mong Kok area. One went to a bank branch, the other to an ATM, after which both met at a crypto exchanger in the Tsim Sha Tsui area. At that point, the police made the arrest, seizing HK$770,000 in cash (approximately $98,540) during the search.
Ten more people, aged between 20 and 41, were later arrested. They confiscated HK$1.05 million (approximately $134,370) in cash, over 560 bank cards, mobile devices, and documentation confirming cryptocurrency transactions. Investigators noted that the detainees often used the accounts of their relatives and acquaintances to hide the true source of the money.
Of the total laundered funds — $15 million — the police linked more than $1.2 million to 58 separate incidents of fraud. Authorities emphasized that the active use of fake bank accounts remains a key problem. Last year alone, the number of such crimes in Hong Kong increased by 12%, leading to more than 10,000 arrests. Moreover, 73% of cases involved fictitious accounts.
In response to the rise in criminal activity in the crypto sphere, in April, the Hong Kong Securities and Futures Commission (SFC) introduced new regulations for cryptocurrency exchanges, including in the field of staking. In addition, the Cybersecurity and Technology Crime Bureau (CSTCB) recently launched a special tool for monitoring suspicious crypto transfers. The authorities hope that this will strengthen control over digital assets and make it more difficult for financial criminals to operate.
