Hong Kong police dismantle money laundering syndicate using cryptocurrency
HK targets cross-border crime
Hong Kong authorities have arrested 12 individuals connected to a large-scale cross-border money laundering scheme that used bank accounts and crypto assets to clean approximately HK$118 million (around $15 million) in illicit funds.
According to Hong Kong media reports, the criminal syndicate recruited citizens from mainland China to travel to Hong Kong and open local bank accounts. These so-called “stooge” accounts were used to receive proceeds from online fraud schemes. Acting on instructions from the syndicate leaders, the recruits withdrew the cash and visited cryptocurrency exchange shops to convert the money into digital assets — a common method of concealing the origin of criminal proceeds.
Police operation and seized evidence
The group operated out of a rented apartment in the Mong Kok district, which served as a base for planning and coordinating the laundering activities. During a police surveillance operation on May 15, two suspects were arrested while attempting to exchange cash for cryptocurrency at a crypto exchange in the Tsim Sha Tsui area. Officers seized approximately HK$770,000 (about $98,500) on the spot, preventing further laundering. Ten additional individuals were arrested shortly thereafter.
In total, authorities seized HK$1.05 million in cash, over 560 bank cards, mobile phones, banking documents, and records related to virtual asset transactions. Officials confirmed that at least HK$10 million of the laundered funds were directly linked to 58 previously reported fraud cases, where victims had lost a combined total of HK$43.2 million.
Official response and regulatory reinforcement
Officers from the Commercial Crime Bureau highlighted a troubling trend in which individuals — knowingly or unknowingly — allow their personal or family bank accounts to be used for criminal activity. Under Hong Kong law, knowingly dealing with the proceeds of crime can lead to up to 14 years in prison and fines of up to HK$5 million.
This operation underscores Hong Kong’s increasing efforts to combat financial crime amid a 12% year-on-year rise in fraud cases. It also coincides with the city’s tightening of crypto regulations, as Hong Kong seeks to strike a balance between innovation and security while reinforcing its position as a global financial hub.
