HitBTC

HitBTC has been frequently flagged in Seychelles as a cryptocurrency exchange linked to extensive money laundering risks, notably connected to the misuse of Seychelles’ jurisdiction by global crypto frauds such as the OneCoin Ponzi scheme. Authorities there have faced challenges coping with massive crypto asset flows that obscure criminal origins via layering and shell companies. The case highlights a critical gap in regulatory oversight, enabling complex laundering chains involving Bitcoin and stablecoins. Persistent investigations and reforms underscore the urgency for Seychelles to strengthen its anti-money laundering framework tailored to virtual assets, as illicit activities continue exploiting crypto exchange platforms within its jurisdiction. This ongoing situation reveals the limits of current enforcement amid rapidly evolving crypto financial crimes.

HitBTC, a cryptocurrency exchange associated with Seychelles jurisdiction, has been linked through multiple reports and complaints to money laundering activities involving high volumes of Bitcoin and other virtual assets. Investigations originated from 2021 following complaints about the misuse of Seychelles for laundering proceeds from fraudulent schemes, including the notorious OneCoin Ponzi scam involving over $10 billion of assets. HitBTC’s lack of transparency, connections to shell companies, and circumvention of KYC-AML norms have made it a focal point in illicit crypto flows in Seychelles. Despite regulatory reforms and enforcement efforts, challenges persist due to the complex corporate structures and limited prosecutorial reach. The case illustrates broader systemic risks facing cryptocurrency oversight in Seychelles as the country seeks to tighten AML regulations in the face of growing financial crime threats related to virtual assets. This situation also raises concerns about Seychelles’ vulnerabilities as a crypto hub exploited by fraudsters and laundering networks.

Countries Involved

The primary country involved is Seychelles, where HitBTC-related entities have operated or claimed registration. Other involved countries include Hong Kong (where HitBTC is often associated), and jurisdictions connected via cryptocurrency flow such as the UAE, and locations implicated in laundering investigations involving Seychelles-based Virtual Asset Service Providers (VASPs).

Date Discovered / Reported

Investigations and reports around suspected money laundering involving HitBTC and Seychelles emerged notably from around 2021 onward, with intensified scrutiny and documentation requests reported through 2023–2025. Specific law enforcement and financial crime investigation units in Seychelles received formal complaints and documents for verification in 2021, with government actions and regulatory reforms continuing through 2024.

Cryptocurrency Involved

Bitcoin (BTC), Tether (USDT), and other virtual assets

Type of Crime

The crime classified here is money laundering, specifically involving virtual assets and cryptocurrency exchange facilitation. Complaints include the misuse of Seychelles as a jurisdictional base to carry out or hide illicit crypto transactions, which also has elements tied to fraud (including large-scale Ponzi schemes like OneCoin) and potentially tax evasion due to lack of transparency.

Entities Involved

Entities include HitBTC (Hit Solution Limited), registered or reportedly operating in Seychelles and Hong Kong, along with Seychelles-registered Virtual Asset Service Providers (VASPs). Other involved entities are shell companies or International Business Companies (IBCs) registered in Seychelles used to obscure ownership and transactional flows. Also mentioned are exchanges like Bybit in linked cases, and the Seychelles Financial Crime Investigation Unit (FCIU) actively engaged in investigation.

PEP Involvement

Limited definitive public evidence exists explicitly linking Politically Exposed Persons (PEPs) to HitBTC laundering in Seychelles, but concerns were raised about potential misuse of Seychelles jurisdiction by individuals linked to high-profile crypto ventures and possible involvement or negligence of public officials in regulatory oversight. Legal actors and complainants urged closer scrutiny of any PEP affiliations in the regulatory or corporate frameworks.

Laundering Techniques Used

Techniques include layering through multiple accounts and blockchain obfuscation services such as mixers and tumblers to anonymize transactions. The use of shell companies and International Business Companies (IBCs) based in Seychelles to hold accounts and move funds internationally is common. Additionally, layering is done through multiple transactions involving fiat and cryptocurrencies on centralized and decentralized exchanges. The use of virtual asset ATMs and opaque corporate structures further facilitated the concealment of illicit origins.

Estimated Value Laundered

The estimated value associated with related scams and laundering processes in Seychelles jurisdictions exceeds tens of billions USD, with specific mention of over $10 billion in OneCoin-linked cryptocurrency and cash/property transfers under investigation. While precise amounts linked solely to HitBTC are less publicly disclosed, its involvement in laundering flows connected to these sums is significant in the broader financial crime contexts tied to Seychelles.

Transaction Analysis Summary

Analysis reveals complex transaction chains where bitcoins and other cryptocurrencies are moved in bulk through HitBTC’s platforms and linked Seychelles entities. Large transfers are followed by rapid conversion into other forms or different coins, often routed through other exchanges in Seychelles or offshore jurisdictions to obscure trails. Many suspicious transaction reports (STRs) have been filed by global Financial Intelligence Units (FIUs) involving HitBTC, with layering designed to reduce detectability and regulatory compliance challenges.

Regulatory/Enforcement Actions Taken

Seychelles police Financial Crime Investigation Unit (FCIU) actively received and is verifying complaints related to HitBTC and other crypto laundering in 2021 onwards. The Seychelles government enacted the VASP Act in September 2024 to license and regulate cryptocurrency exchanges and custodians within its jurisdiction, improving AML/CFT frameworks. Investigations have been ongoing, with calls from victims and lawyers to enforce stricter sanctions against illicit crypto activities. However, enforcing actions against shell entities has been challenging, and substantive prosecutions remain limited at this stage.

Links to Reports / Sources

Case Title / Operation Name:

HitBTC Money Laundering Allegations in Seychelles

Country(s) Involved:

Seychelles, United Arab Emirates

Platform / Exchange Used:

HitBTC cryptocurrency exchange

Cryptocurrency Involved:

Bitcoin (BTC), Tether (USDT), and other virtual assets

Volume Laundered (USD est.):

Estimated value linked to laundering and fraud schemes involving Seychelles exceeds $10 billion USD

Wallet Addresses / TxIDs :

Multiple wallet addresses traced in investigations including HTX exchange wallets and others used for layering and swapping

Method of Laundering:

Use of layering, blockchain mixers and tumblers, shell companies, International Business Companies (IBCs), internal cryptocurrency swaps (BTC to USDT), and rapid multiple transfers to obscure fund origins

Source of Funds:

Fraudulent crypto schemes such as OneCoin scam, other crypto frauds, possible tax evasion, and general illicit sources of funds funnelled through Seychelles

Associated Shell Companies:

Seychelles-registered International Business Companies allegedly used to conceal ownership and facilitate laundering activities

PEPs or Individuals Involved:

No confirmed direct PEP involvement disclosed publicly, but concerns about regulatory oversight and possible indirect links to public officials

Law Enforcement / Regulatory Action:

Seychelles Financial Crime Investigation Unit (FCIU) actively investigating, regulatory reforms enacted including VASP Act 2024 licensing crypto exchanges, cooperation with international law enforcement, ongoing case verification processes

Year of Occurrence:

Initial reports and investigations from 2021 onward, ongoing through 2025

Ongoing Case:

Ongoing

AML Network Risk Rating:

🔴 High Risk