Crypto Crime Network Busted in $15 Million Laundering Case

Nowadays, not many people still believe that the Web3 industry is just a dark zone for money laundering, as many industries are already actively integrating blockchain technologies. However, even today, this financial sector is still used for laundering money.

Police arrested nine men and three women in mainland China and Hong Kong on suspicion of money laundering. The suspects were allegedly recruiting “droppers” people who open bank accounts in their name to receive money obtained through fraud. That money was then converted into digital assets through cryptocurrency exchanges. The suspects rented a residential apartment in the Mong Kok area as their operation center. According to police, of the $15 million laundered, more than $1.2 million was linked to 58 reported fraud cases.

Law enforcement had been monitoring the suspects until two of them left the rented apartment. One went to a bank, and the other to an ATM. Then both visited a crypto exchange in the Tsim Sha Tsui area, where they were arrested. The police seized HK$770,000 in cash (around $98,540). Shortly after, ten more people aged 20 to 41 were arrested. Officers seized over HK$1 million ($134,370), more than 560 bank cards, mobile phones, and documents related to crypto transactions.

New Crackdown Shows Dark Side of Digital Finance

According to the Hong Kong Commercial Crime Bureau, the arrested individuals actively used bank accounts of friends and relatives to launder money. There has been a rise in such crimes: just last year, fraud cases in Hong Kong increased by 12%, with more than 10,000 arrests. Of those, 73% involved fake or fraudulent bank accounts.

As criminal activity grows, Hong Kong authorities are tightening regulations on the crypto sector. In 2025, the Securities and Futures Commission (SFC) introduced new rules for exchanges offering staking services, strengthening investor protection. In addition, the Cyber Security and Technology Crime Bureau (CSTCB) launched a special tool to track suspicious crypto transactions. This is part of a broader strategy to increase financial transparency and stop money laundering through digital assets.

Coinmooner wants to remind you that in the Web3 industry, it is very important to use the most advanced security methods to protect yourself and your finances from the many attacks by cybercriminals.