Hong Kong Dismantles Cross-Border Crypto Money Laundering Network

Authorities in Hong Kong have taken down a cross-border cryptocurrency money laundering operation that allegedly handled approximately HK$118 million (equivalent to US$15 million) in illegal funds. The arrests were part of a larger campaign targeting the misuse of personal banking information for criminal purposes.

On Thursday, the Commercial Crime Bureau carried out a series of coordinated raids, detaining 12 individuals — nine men and three women — aged between 20 and 40. These arrests occurred across multiple districts. During the operation, officers confiscated HK$1.05 million in cash, over 560 bank cards, numerous electronic devices, and financial records.

Investigators revealed that the group began recruiting individuals from mainland China in mid-2023. These recruits were instructed to open fraudulent bank accounts in Hong Kong, which were later used to funnel proceeds from various scams. Once the funds were in the system, they were withdrawn in cash and subsequently converted into cryptocurrency.

Among those arrested, two were Hong Kong residents identified as the main coordinators. The other ten suspects, all from mainland China, reportedly acted as account holders. According to the investigation, more than 550 local bank accounts were involved in the laundering activities.

Authorities have so far connected around HK$10 million of the laundered money to 58 fraud cases. The total reported losses from victims amount to approximately HK$43.2 million. The syndicate operated primarily from an apartment in Mong Kok, which also served as accommodation for the individuals processing the illicit transactions.