May 19, 2025
By Our Correspondent
The Hong Kong police are intensifying their efforts to secure the city’s web3 environment by introducing a new tool aimed at tracking illicit cryptocurrency transactions.
The Cyber Security and Technology Crime Bureau of Hong Kong has unveiled a newly developed crypto tracing tool, named CryptoTrace, as part of its initiative to address the increasing prevalence of crypto-related criminal activities.
This tool, which was collaboratively developed with the University of Hong Kong and first introduced at the Blockchain Security Summit 2025, is intended to offer “advanced intelligence and investigative support” to officers managing cases involving virtual assets, according to the CSTCB.
The bureau also mentioned that it had conducted training sessions in late March to enhance the capabilities of frontline officers in investigating cryptocurrency crimes using this system.
Beyond its crime-fighting objectives, the CSTCB stated that it is collaborating closely with stakeholders in the web3 sector to “co-build a safer and more sustainable ecosystem,” although specific details were not provided.
The University of Hong Kong, a co-developer of the tool, asserts that CryptoTrace employs “state-of-the-art blockchain analytics, graph, and visualization technologies” to assist investigators in tracing laundered funds, pinpointing suspect locations, and “streamlining investigations into scams involving cryptocurrencies.”
This initiative is timely, as the incidence of crypto crime continues to escalate in Hong Kong. In October 2024, police reported the arrest of 27 individuals involved in a romance scam driven by deepfake technology, which targeted victims throughout Asia.
This group allegedly utilized AI-generated video calls and a fraudulent cryptocurrency platform to deceive victims out of more than $46 million in crypto. A study conducted by University of Texas finance professor John Griffin indicated that romance scams resulted in over $75 billion in losses from January 2020 to February 2024, with a significant number of the scammers operating from Southeast Asia.
