Hong Kong Police Bust Crypto Money Laundering Ring Involving HK$118M

In Brief:

Police dismantled a cross-border money laundering group that used virtual asset exchange shops to launder HK$118 million.

The operation resulted in 12 arrests and uncovered ties to at least 58 fraud cases.

The Hong Kong Police have successfully dismantled a major cross-border money laundering operation involving the use of cryptocurrency exchange shops to clean illicit funds. Dubbed the "Night Raid" operation, the crackdown led to the arrest of 12 individuals—both men and women—connected to laundering a total of HK$118 million.

According to Senior Inspector Lo Wan-shan from the Commercial Crime Bureau, the group operated between July 2024 and May 2025, recruiting individuals from mainland China to open puppet bank accounts in Hong Kong. These accounts were used to receive proceeds from various fraud schemes, which were then withdrawn and converted into crypto at exchange shops.

Investigators revealed the group utilized over 500 bank accounts to process the illicit funds. Of the HK$118 million, approximately HK$10 million has been confirmed as directly tied to 58 fraud cases, with victims losing an estimated HK$43.2 million.

The bust highlights growing concerns around the use of unregulated crypto venues for money laundering and underscores the increasing coordination between Hong Kong and mainland authorities in cracking down on crypto-fueled financial crime.

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