HK-China Police Dismantle Crypto-Linked Money Network in Cross-Border Crackdown

Chinese and Hong Kong authorities have dismantled an underground banking network that used cryptocurrency trading to facilitate illicit transactions. The network, which operated across the border between mainland China and Hong Kong, involved over 170 suspects who were detained in a joint operation.

The investigation found that the group had established shell companies in both jurisdictions to create illegal transfer routes. They allegedly moved funds through paired transactions between domestic and overseas accounts, fabricated trade deals, cash and gold smuggling, and cryptocurrency transactions.

Authorities froze over 15 million yuan ($2.2 million) in mainland China, while Hong Kong police seized assets valued at approximately 170 million Hong Kong dollars (around $21.7 million). This case highlights the use of digital assets alongside traditional methods in cross-border financial crime investigations.