In a fresh crackdown on crypto-related crime in Hong Kong, the Hong Kong police arrested 12 individuals for running a cross-border money laundering scheme that laundered HK$118 million (US$15 million) through cryptocurrency and over 500 mule bank accounts, as reported by Cointelegraph.
The syndicate was successfully brought down on 15 May 2025, with the arrest of nine men and three women from Hong Kong and mainland China.
The criminal organisation rented a unit in Hong Kong’s Mong Kok district to plan and execute its money laundering operations. Of the US$15 million laundered, over US$1.2 million was tied to 58 reported fraud cases.
The suspects reportedly recruited others to open bank accounts, which were used to receive money from fraud cases. These funds were then converted into cryptocurrency at exchange shops to launder the money, according to a report by Hong Kong Commercial Daily.
The arrest occurred following police surveillance on 15 May 2025. Two recruits were seen leaving the syndicate’s base in Mong Kok. One went to a bank, and the other to an ATM. Both then visited a crypto exchange shop in Tsim Sha Tsui to convert the cash into cryptocurrency.
Both individuals were arrested on the spot, and HK$770,000 in cash was seized before it could be laundered. Shortly after, ten more people, aged 20 to 41, were also arrested.
Police seized around HK$1.05 million (US$134,370) in cash, more than 560 ATM cards, several mobile phones, and various bank documents and records linked to cryptocurrency transactions.
Senior Inspector Tse Ka-lun from Hong Kong’s Commercial Crime Bureau stated that the suspects often used bank accounts belonging to friends and family for money-laundering.
The Hong Kong crypto crime crackdown coincides with Hong Kong’s ongoing efforts to implement a comprehensive crypto regulatory framework. In April, Hong Kong’s Securities and Futures Commission introduced new regulations for crypto exchanges custody service providers to ensure robust oversight into protecting customers and the financial system.
Featured image: Edited by Fintech News Hong Kong, based on image by tiko33 via Freepik