Hong Kong Customs Targets Crypto Crimes with Tracking Tech
Hong Kong is taking decisive action to combat crypto-fueled money laundering, teaming up with the University of Hong Kong to develop a digital tracking tool for cryptocurrency transactions. The announcement came from Assistant Commissioner Mario Wong Ho-yin, who said the project is a response to increasingly transnational and complex financial crimes tied to blockchain-based assets.
While specifics about how the tool works remain classified due to security reasons, officials confirmed it will be a core part of Hong Kong’s push to monitor and trace illicit crypto transactions, particularly those involved in large-scale laundering operations.
Crypto Plays a Growing Role in Laundering Schemes
Between 2021 and May 2025, Hong Kong Customs registered 39 major money laundering cases, with seven directly involving cryptocurrencies. Many were trade-based laundering schemes where illicit funds were disguised as legitimate transactions. One particularly egregious case uncovered over 1,000 suspicious transfers worth HK$1.8 billion ($229 million) across five companies and 18 bank accounts.
Three individuals were arrested in that investigation, with two charged for laundering HK$760 million via a crypto platform.
These cases highlight the evolving sophistication of digital financial crimes in Asia, prompting authorities to seek enhanced interagency and academic cooperation. The Customs and Excise Department also held a three-day cross-border workshop this week with officials from countries including China, India, Iran, New Zealand, Thailand, and Singapore, aiming to bolster international collaboration against crypto-enabled laundering.
Crypto Exec in Hot Water for $530M Laundering Scheme
The risks posed by digital assets aren’t limited to Hong Kong. In a high-profile global case, Iurii Gugnin, founder of crypto payments company Evita Pay, was arrested in New York and indicted on 22 federal charges for allegedly laundering over $530 million into the United States from sanctioned Russian banks.
According to the U.S. Department of Justice, Gugnin facilitated the transfer of funds from blacklisted institutions including Sberbank and VTB using stablecoins, giving Russian clients access to restricted U.S. technologies. The scheme, which ran from June 2023 to January 2025, allegedly used unlicensed money transmitting platforms and involved both wire fraud and money laundering.
If convicted, Gugnin could face life imprisonment, signaling a serious warning to bad actors exploiting the anonymity of crypto channels.
A Broader Push for Regulatory Innovation
Hong Kong’s proactive development of a crypto tracking system underscores a growing global consensus that law enforcement must modernize its tools to keep pace with evolving digital threats. The city’s decision to work directly with university researchers indicates a shift toward data-driven law enforcement solutions, as criminals increasingly migrate to crypto-based systems for laundering large sums across borders.
With blockchain adoption on the rise, even legitimate use cases are being closely watched by regulators seeking to strike a balance between innovation and oversight.
As other financial hubs like Singapore, Dubai, and Zurich continue refining their crypto frameworks, Hong Kong’s initiative could serve as a regional blueprint for tracing and intercepting illicit blockchain activity—especially if the tech proves scalable and effective.
