Hong Kong, HKU Develop Crypto Tracker To Fight Money Laundering

HomeNews* Hong Kong Customs is working with the University of Hong Kong to develop a digital system for tracing cryptocurrency transactions linked to money laundering.

• Officials plan to expand partnerships with regional authorities, financial professionals, and academics to address cross-border financial crime.
• Seven out of 39 major money laundering cases in Hong Kong since 2021 have involved cryptocurrency, mostly through trade-based operations.
• Authorities from eight countries met in Hong Kong to discuss strategies for fighting digital financial crime and building international cooperation.
• A crypto platform executive was charged in the U.S. with laundering more than $530 million for sanctioned Russian banks using stablecoins. Hong Kong Customs has joined forces with the University of Hong Kong to develop a digital tool that can track cryptocurrency transactions suspected of being used for money laundering. Officials announced the initiative on June 12, stating it would help counter increasingly complex and international financial crimes.

• Advertisement - According to Assistant Commissioner Mario Wong Ho-yin, law enforcement is expanding collaboration with academic institutions, regional financial experts, and other government agencies. The goal is to improve their ability to combat financial crime that crosses borders. “These money laundering threats are characterized by a transnational and borderless nature, and no single agency can tackle this problem alone,” Wong said, as reported by the South China Morning Post.

Officials did not disclose technical details about how the digital tracking system works, citing security reasons. Seven of the 39 significant money laundering investigations in Hong Kong from 2021 to May 2025 involved cryptocurrencies. Most of those cases were trade-based schemes, where illegal funds were presented as legitimate business transactions.

One major case saw over 1,000 suspicious transactions totaling about $229 million (1.8 billion Hong Kong dollars), using five companies and 18 local bank accounts. Three people were arrested in this case, including two accused of moving $98 million (760 million Hong Kong dollars) through a crypto platform.

Earlier this week, Hong Kong Customs and the university hosted officials from eight countries—including China, India, Iran, New Zealand, Thailand, and Singapore—for a workshop to strengthen cooperation against digital financial crime.

In a related U.S. development, Iurii Gugnin, founder of the crypto payments company Evita Pay, was indicted in New York on 22 federal charges. He is accused of laundering more than $530 million for sanctioned Russian banks between June 2023 and January 2025. According to the U.S. Department of Justice, Gugnin allegedly used stablecoins—cryptocurrencies designed to have a stable value—to help Russian clients access restricted technology in the United States. If convicted, Gugnin faces possible life imprisonment.

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