Bitrace CEO Invited to Deliver a Special Lecture on Crypto Crimes for Hong Kong and Macau Regulatory and Law Enforcement Agencies

Bitrace CEO Invited to Deliver a Special Lecture on Crypto Crimes for Hong Kong and Macau Regulatory and Law Enforcement Agencies

On October 8, 2024, Bitrace CEO Isabel Shi was invited to participate in the three-day “Virtual Asset Investigation Bootcamp” hosted by the Hong Kong Police Force. She delivered a special lecture on “Trends and Investigation Methods in Cryptocurrency Crime and Money Laundering” to over 60 regulatory and law enforcement officers, including representatives from the Hong Kong Police Force, Macau Judiciary Police, Hong Kong Customs, the Hong Kong Monetary Authority (HKMA), and the Securities and Futures Commission (SFC).

Drawing on her extensive experience in the cryptocurrency sector, Isabel provided an in-depth analysis of common tactics used in cryptocurrency crimes, such as fraud, dark market transactions, online gambling, and drug trafficking. She also discussed new methods of cryptocurrency-based money laundering and how traditional laundering techniques are being enhanced by the use of cryptocurrencies to increase anonymity. Isabel pointed out that as the cryptocurrency market rapidly grows, criminal methods continue to evolve. From traditional crimes to emerging blockchain-based crimes, perpetrators are increasingly exploiting the anonymity, cross-border nature, and technical complexity of cryptocurrencies to evade legal oversight. For regulatory and law enforcement agencies, the focus should shift from traditional “investigation-recovery” approaches after crimes and risk events occur, to real-time monitoring, prevention, and early detection.

Isabel highlighted the distinctive features of cryptocurrency crimes in Asia, stating: “Bitrace has been closely monitoring the crime market in Asia, particularly Southeast Asia. Criminal gangs in the region tend to form clusters and operate on an industrial scale. Alongside these crimes, related services have also become industrialized in Southeast Asia. One example is payment services, which provide a payment network for online gambling and telecom fraud groups, facilitating cash and cryptocurrency transactions as well as cash exchange. Another is the money laundering networks and markets that offer intermediary and escrow services for illegal transactions. The increasingly industrialized and large-scale nature of crime in Asia makes it harder to combat.”

She advised regulatory and law enforcement agencies to pay attention to whether criminal funds are entering local enterprises and institutions through payment services or over-the-counter (OTC) channels.

In addition, Isabel provided a detailed explanation of the core strategies for investigating these criminal activities and how to conduct thorough tracing and tracking of funds. Through a phishing scam case that Bitrace assisted law enforcement in cracking, she demonstrated how Bitrace’s investigation team utilized the BitracePro investigative tool and their methodology to trace stolen funds from swaps (decentralized exchanges) through bridges (cross-chain transfers) to mixers (coin mixing services), ultimately bringing the perpetrators to justice. She emphasized that a deep understanding of cryptocurrency technology, the use of data tracking tools, and efficient cooperation with Virtual Asset Service Providers (VASPs) are crucial in fighting these new types of crimes.

At the end of the training, Isabel introduced Bitrace’s core products and their application in combating cryptocurrency crimes. She stressed that Bitrace’s solutions focus on transaction risk monitoring, on-chain asset analysis, and fund flow tracing, providing regulators, law enforcement agencies, and financial institutions with powerful tools to identify and combat cryptocurrency-related criminal activities.

This lecture provided the attending departments with valuable knowledge and tools, helping them enhance their ability to detect and combat criminal behavior in the increasingly complex cryptocurrency landscape. It also further solidified Bitrace’s leadership in the field of cryptocurrency compliance and risk management.

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