$15M Crypto Money Laundering Ring Busted in Hong Kong Using Over 500 Bank Accounts

$15M Crypto Money Laundering Ring Busted in Hong Kong Using Over 500 Bank Accounts

Police arrest 12 suspects in cross-border crypto laundering syndicate linked to 58 fraud cases

Hong Kong – May 17, 2025 — In a major law enforcement operation, Hong Kong police dismantled a $15 million cryptocurrency money laundering ring on May 15, arresting 12 individuals connected to a sophisticated network that funneled illicit funds through over 500 stooge bank accounts and cryptocurrency exchange shops.

According to local media reports, nine men and three women, aged between 20 and 41, were arrested across Hong Kong and mainland China as part of the sting. The group is accused of laundering HK$118 million (US$15 million), of which HK$9.4 million (US$1.2 million) has already been tied to 58 reported fraud cases.

Coordinated Operation Foils Real-Time Laundering Attempt

The bust came after weeks of surveillance, culminating in police observing two members of the syndicate leaving a rented residential unit in Mong Kok, a district in Kowloon that served as the group’s operational base.

One suspect visited a bank, the other an ATM, before both proceeded to a crypto exchange shop in Tsim Sha Tsui, where they intended to convert large amounts of cash into cryptocurrency — a common tactic used to obfuscate financial trails. Police arrested the pair on-site, recovering HK$770,000 (US$98,540) in cash before it could be laundered.

Evidence Seized: Phones, Cards, Crypto Logs

A broader sweep later that day resulted in the arrest of the remaining ten individuals. Police seized:

• HK$1.05 million (US$134,370) in cash

• Over 560 ATM cards

• Numerous mobile phones

• Bank account documentation

• Records related to cryptocurrency transactions

Senior Inspector Tse Ka-lun of the Commercial Crime Bureau noted that the group commonly used bank accounts belonging to friends and family, a method that has made detection more difficult in recent years.

Surge in Fraud, Push for Regulation

Hong Kong has seen a 12% increase in fraud cases year-on-year in 2024, with over 10,000 fraud-related arrests made. Nearly 73% of those involved stooge bank accounts, reinforcing the scale of the issue and the need for tightened oversight.

The crackdown aligns with Hong Kong’s broader push to regulate crypto markets, particularly amid its aspirations to become a global crypto hub. Recent steps include:

• April 2025: New rules for exchanges offering staking services

• February 2025: Roadmap to enhance market access, boost compliance, and improve crypto infrastructure

Authorities believe these frameworks will make it harder for criminal networks to exploit the digital finance space while still nurturing the local blockchain industry.