Hong Kong Police Bust HK$118 Million Money Laundering Network via Cryptocurrency and 500 Fictitious Accounts!

Jakarta, Pintu News – A major operation carried out by the Hong Kong Police successfully dismantled a cross-border money laundering syndicate that utilized cryptocurrencies and more than 500 fraudulent bank accounts.

During the operation, authorities arrested 12 suspects and uncovered money laundering activities worth more than HK$118 million.

The crime involved converting fraudulent proceeds into crypto through a cryptocurrency exchange shop in the Hong Kong area. The success of this operation was highlighted as it involved a wide network and illegal use of digital financial technology.

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Criminal networks use fake accounts and crypto to launder money

The syndicate is known to have operated from a rented apartment unit in the Mong Kok area of Hong Kong, which served as a base for devising and executing money laundering schemes. The perpetrators recruited individuals to open bank accounts in their names, which were then used to receive the proceeds of crime.

The funds are then converted into cryptocurrencies such as Bitcoin (BTC) or Ethereum (ETH) through local crypto exchange shops. Police said that more than Rp19.7 billion of this is directly related to the 58 fraud cases that have been reported.

In the arrest operation on May 15, 2025, two perpetrators were taken into custody after leaving the syndicate headquarters-one headed to a bank and the other to an ATM before both visited a crypto exchange shop in Tsim Sha Tsui.

When arrested, they were carrying HK$770,000 in cash, which they suspected would soon be converted into cryptocurrency. After that, 10 other perpetrators were arrested both in Hong Kong and in mainland China. Evidence in the form of cash worth HK$1.05 million or around Rp17.5 billion was also successfully seized.

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Police Find Over 560 ATM Cards and Evidence of Crypto Transactions

Apart from cash, the police also seized more than 560 ATM cards believed to be used in this large-scale money laundering activity. A number of cell phones, bank documents and evidence of cryptocurrency transactions were also found, reinforcing the suspicion of their involvement in the money laundering network. The perpetrators are said to have used accounts belonging to their friends and family to avoid detection by the authorities.

According to Senior Inspector Tse Ka-lun of the Hong Kong Commercial Crime Bureau, the mode of using stooge accounts or accounts in the name of another person is increasingly used in financial crimes.

Data shows that about 73% of the more than 10,000 fraud-related arrests in Hong Kong through 2024 involved such account holders. This case also reflects the increasing misuse of modern financial technologies such as crypto in criminal activities.

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Crypto regulations tighten amid Hong Kong’s ambition to become a global crypto hub

This major arrest comes amid Hong Kong’s efforts to strengthen cryptocurrency-related regulations and make the region a center of digital finance innovation. In April, Hong Kong’s Securities and Futures Commission (SFC) issued new rules regarding staking services offered by crypto exchanges.

The policy aims to provide more protection to consumers while encouraging the healthy growth of the crypto ecosystem.

In February 2025, the SFC also released a roadmap to expand market access, enhance compliance, multiply crypto investment products, strengthen infrastructure, and increase collaboration with industry players.

However, on the other hand, the increase in criminal activity utilizing cryptocurrencies is a real challenge. Local authorities are now increasingly wary of possible exploitation of the digital financial system by organized criminal groups.

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Reference:

• Cointelegraph. Hong Kong police bust $15M laundering ring that used crypto, 500 bank accounts. Accessed May 20, 2025.
• Featured Image: Generated by AI