In response to a growing number of digital asset-related crimes, the Hong Kong Customs and Excise Department has joined forces with the University of Hong Kong to develop a sophisticated tool for tracking cryptocurrency transactions linked to money laundering.
Speaking at a press conference, Assistant Commissioner Mario Wong Ho-yin emphasized the urgent need for stronger collaboration between government agencies, academic institutions, and financial regulators to address the increasingly global nature of crypto-based financial crime.
“These money laundering threats are characterized by a transnational and borderless nature, and no single agency can tackle this problem alone,” Wong stated.
While the department refrained from disclosing specific technical details of the new tracking system due to operational sensitivities, officials made clear that the effort represents a strategic push to modernize law enforcement capabilities in the digital finance era.
Crypto Money Laundering Rises, Hong Kong Strengthens Response
Hong Kong has seen a significant uptick in crypto-related money laundering activity in recent years, prompting a stronger response from law enforcement. Between 2021 and May 2025, the city’s customs department investigated 39 major money laundering cases—seven of which involved digital assets. Most of these schemes were trade-based, using everyday business transactions to conceal illicit funds.
One particularly large case uncovered over 1,000 suspicious crypto transactions valued at 1.8 billion Hong Kong dollars (roughly $229 million). Authorities linked the activity to five companies and 18 domestic bank accounts. Three individuals were arrested, including two suspected of funneling HK$760 million through a cryptocurrency platform.
To bolster its crackdown, Hong Kong Customs co-hosted a three-day international workshop with the University of Hong Kong, bringing together enforcement agencies and diplomats from eight countries, including China, India, Iran, and New Zealand. The goal: strengthen cross-border cooperation and intelligence-sharing to tackle the growing threat of digital financial crimes.
U.S. Indicts Founder in $530M Laundering Case
In a related case, U.S. authorities have arrested and charged Iurii Gugnin, the founder of crypto payments firm Evita Pay, in connection with a massive money laundering operation that allegedly funneled over $530 million into the United States from Russian banks under international sanctions.
The Department of Justice revealed that Gugnin orchestrated a network of stablecoin transactions designed to bypass sanctions imposed on major Russian financial institutions such as Sberbank and VTB. The funds were allegedly used to help sanctioned Russian entities gain illegal access to U.S. technologies and services.
Federal prosecutors stated that the operation spanned from June 2023 through January 2025 and involved multiple violations, including wire fraud, conspiracy to launder money, and operating an unauthorized money transmission business. Gugnin, who was apprehended in New York, now faces a 22-count indictment. If convicted, he could spend the rest of his life in prison.
Quick Facts
- Hong Kong Customs partnered with HKU to develop a crypto forensics tool.
- Seven of 39 recent laundering cases involved cryptocurrency.
- One case traced $229M in suspicious crypto-linked activity.
- Officials from eight countries joined an anti-money laundering workshop.
- U.S. arrested a crypto founder for laundering $530M from Russia.
