Hong Kong customs recently successfully cracked a major Money Laundering case involving HKD 1.15 billion, revealing a new type of Money Laundering method used by criminals that combines cash and stablecoins. Two suspects have been arrested, a 37-year-old local man and a 50-year-old foreign man.

This case highlights the evolution of current Money Laundering methods. The suspects first illegally took large amounts of cash out of Hong Kong, and then concealed the source of the funds through frequent stablecoin transactions. Customs authorities noticed that the backgrounds of these two men did not match their frequent large financial transactions, leading to an investigation.

Law enforcement officers conducted surprise searches at 4 residences and 2 companies, thoroughly checking the mobile phones, bank cards, and electronic wallet records of the individuals involved in the case. Currently, the case is still under further investigation, and two suspects have been released on bail but are required to undergo subsequent investigations.

It is worth noting that this is not the only large-scale Money Laundering case involving virtual assets in Hong Kong recently. In May of this year, customs uncovered a Money Laundering network involving virtual assets worth 3.5 billion HKD. Earlier in February, a cross-border Money Laundering case related to the Indian market amounting to as much as 14 billion HKD was also detected.

These cases reflect that stablecoins are becoming a new tool for Money Laundering crimes. Due to the stablecoin's price being pegged to fiat currencies, with low volatility and the characteristic of fast cross-border transfers, they are viewed by criminals as an ideal tool for Money Laundering.

As the application of virtual currencies becomes increasingly widespread globally, how to effectively regulate and prevent Money Laundering activities using virtual assets such as stablecoins has become a new challenge faced by law enforcement agencies in various countries. The successful case by Hong Kong Customs undoubtedly provides valuable experience for combating such new forms of financial crime.

However, this also reminds us that while enjoying the convenience brought by financial technology, the relevant regulatory measures and legal frameworks need to keep pace with the times to cope with the ever-evolving methods of financial crime. Only in this way can we effectively curb illegal activities such as Money Laundering while protecting financial innovation and maintaining the stability and security of the financial system.