Facing rising cryptocurrency-related crimes, Hong Kong police have launched CryptoTrace, a blockchain forensics tool developed in collaboration with the University of Hong Kong. This innovative platform aims to investigate illicit cryptocurrency activities and boost security within the digital financial ecosystem. The Cyber Security and Technology Crime Bureau spearheads this initiative, leveraging cutting-edge blockchain analytics and visualization techniques for tracing illicit funds. The development signifies Hong Kong’s commitment to creating a secure Web3 environment, further supported by targeted training programs for frontline officers. While the tool’s specific impact on cryptocurrency markets is yet unknown, its deployment will likely influence regional law enforcement strategies, potentially fostering collaboration between exchanges and regulators. This effort echoes past challenges like the $46 million deepfake scam targeting Asian victims, highlighting the need for robust tools to effectively combat such crimes.