Hong Kong to Launch New Crypto Tracking Tool as Digital Asset Money Laundering Cases Surge

Hong Kong’s Customs and Excise Department has joined forces with the University of Hong Kong to develop a digital tool aimed at tracing cryptocurrency transactions linked to suspected money laundering.

Speaking on Thursday, Assistant Commissioner Mario Wong Ho-yin emphasized the department’s intent to deepen cooperation with academic researchers, financial professionals across the region, and international law enforcement agencies to confront the growing threat of cross-border financial crime.

Wong explained during a media briefing:

“These money laundering threats are characterized by a transnational and borderless nature, and no single agency can tackle this problem alone.”

While Wong confirmed the initiative, he declined to disclose specifics about how the tool functions, citing operational confidentiality.

Hong Kong Flags Growing Number of Money Laundering Cases Tied to Crypto

Between 2021 and May 2025, Hong Kong customs uncovered 39 major money laundering cases, with seven involving cryptocurrencies.

Most schemes were trade-based, disguising illicit funds as routine business transactions.

In one notable case, authorities identified over 1,000 suspicious transactions totalling HK$1.8 billion (approximately US$229 million) across five companies and 18 local bank accounts.

Three individuals were arrested, two of whom allegedly funneled HK$760 million through a crypto platform.

To bolster international collaboration against digital financial crime, the Customs and Excise Department and the University of Hong Kong hosted a three-day workshop this week.

Law enforcement officials and consulate representatives from eight jurisdictions—including China, India, Iran, New Zealand, Thailand, and Singapore—participated in discussions aimed at enhancing cross-border coordination.

Crypto Executive Accused of Laundering $530 Million

The founder of crypto payments platform Evita Pay, Iurii Gugnin, has been arrested in New York and indicted on 22 federal charges linked to an alleged $530 million laundering scheme involving sanctioned Russian banks.

According to the US Department of Justice, Gugnin is accused of using stablecoin transactions to help Russian clients—connected to blacklisted financial institutions such as Sberbank and VTB—circumvent sanctions and obtain restricted American technologies.

Prosecutors say the operation ran from June 2023 to January 2025 and involved wire fraud, money laundering, and running an unlicensed money-transmitting business.

If found guilty, Gugnin could face life in prison.