Hong Kong Customs and the University of Hong Kong are developing a crypto tracking tool, in the context of 7 out of 39 serious money laundering cases recently involving digital assets.
The Hong Kong Customs and Excise Department is collaborating with the University of Hong Kong to develop a specialized digital tool aimed at tracing cryptocurrency transactions suspected of being related to money laundering. This move comes in the context of the special administrative region witnessing a significant increase in complex financial cases involving digital assets.
Mr. Mario Wong Ho-yin, Deputy Commissioner of the Customs and Excise Department, emphasized at a recent press conference the necessity of extensive cooperation between academia, regional financial experts, and international law enforcement. Mr. Wong pointed out that today's money laundering activities are transnational and borderless, and cannot be addressed by a single agency, although he declined to disclose technical details of the new tool for security reasons.
Statistics from 2021 to May 2025 show that Hong Kong Customs has handled a total of 39 large-scale money laundering cases, of which up to 7 cases are directly related to cryptocurrency. The majority of these cases use trade-based money laundering methods, a sophisticated technique to legitimize illicit funds through seemingly legitimate trade transactions.
A typical case is currently under investigation, involving more than 1,000 suspicious transactions worth up to HKD 1.8 billion (approximately USD 229 million), surrounding 5 companies and 18 domestic bank accounts. Three individuals have been arrested, two of whom are accused of transferring amounts up to HKD 760 million through a crypto trading platform.
In light of this urgent situation, a three-day thematic workshop was organized by the Hong Kong authorities in collaboration with the University of Hong Kong, attracting participation from representatives of law enforcement agencies and consulates from 8 countries and territories, including Mainland China, India, Iran, New Zealand, Thailand, and Singapore.
The workshop aims to enhance cross-border coordination, share experiences, and build common strategies to effectively combat digital financial crimes.
Hong Kong's move comes alongside a global effort in the fight against increasingly sophisticated money laundering methods. Recently, the U.S. Department of Justice (DOJ) indicted and arrested Iurii Gugnin, the founder of the crypto payment platform Evita Pay, on 22 federal charges related to laundering over USD 530 million for sanctioned Russian banks through stablecoin transactions.
