May 20, 2025
By Our Correspondent
Hong Kong authorities have successfully dismantled a cryptocurrency-related money laundering network that allegedly processed about HK$118 million (US$15 million) in illicit funds. The enforcement action led to the arrest of more than a dozen people as officials stepped up their campaign against those who used their bank details.
Law enforcement conducted a series of coordinated raids on Thursday, led by the Economic Crime Prevention Bureau. The raids resulted in the arrest of nine men and three women aged between 20 and 40 in various districts of Hong Kong. The operation yielded evidence including HK$1.05 million in cash, a collection of more than 560 bank cards, multiple communication devices and financial records.
Investigators revealed that the criminal enterprise systematically recruited mainland Chinese nationals since mid-2023 to establish fake banking relationships with traditional and digital financial institutions in Hong Kong. A senior police official explained that these accounts acted as conduits for the proceeds of various fraudulent operations. Recruited individuals would withdraw cash using various payment cards and transport the funds to cryptocurrency exchanges, where the money would be converted into cryptocurrencies.
Authorities said that among those detained were two individuals from Hong Kong who were identified as the main organizers of the operation. They were detained along with ten mainland Chinese nationals who allegedly acted as front accounts for the scheme. Initial financial analysis suggests that the organization transferred approximately HK$118 million through a network of more than 550 domestic bank accounts and cryptocurrency transactions.
Investigators have now traced HK$10 million of these laundered assets to 58 documented fraud cases. In addition, victims have reported total financial losses of HK$43.2 million.
