- Hong Kong police arrest four individuals, including a 14-year-old, in a HK$11 million crypto scam.
- The syndicate used counterfeit banknotes to defraud cryptocurrency owners.
- The arrests are part of ongoing efforts to combat rising crypto-related scams.
Hong Kong police have apprehended four individuals, including a teenager, involved in a cryptocurrency fraud operation using counterfeit banknotes.
The syndicate lured victims with offers above the market price for digital currencies and then tricked them with fake HK$1,000 banknotes, resulting in losses of up to HK$11 million.
Major Crypto Fraud Ring Busted by Hong Kong Police
The suspects, aged between 14 and 39, were charged with conspiracy to defraud and using counterfeit banknotes. The group operated by presenting stacks of counterfeit notes, only the top and bottom of which were real, and insisted on online transactions to finalize deals. Victims were left empty-handed once their cryptocurrency was transferred, highlighting the need for heightened vigilance in financial transactions.
The operation was sophisticated, with members assigned specific roles. Two masterminds procured the counterfeit notes from a storage facility in Mong Kok and set up a fake business to lure victims. They targeted potential victims online and in person, using real banknotes to conceal the counterfeit ones in the stacks they presented.
Victims were invited to the fake store, shown stacks of counterfeit notes, and prohibited from untying the stacks. Once the cryptocurrency was transferred, the scammers moved the assets out of the victims’ accounts and refused to pay, leaving the victims with nothing. This case brings the total number of arrests related to crypto scams in Hong Kong to 14 since October last year.
Authorities have been intensifying their efforts to combat the rise in crypto-related fraud. In a related development, a worldwide manhunt is underway for two prominent Hong Kong crypto influencers linked to the embattled JPEX exchange in Dubai. These influencers are facing allegations of theft, fraud, and money laundering, with Interpol now involved in the investigation.
The arrests underscore the growing threat of cryptocurrency fraud in Hong Kong and highlight the need for the public to remain vigilant and verify the legitimacy of financial transactions to avoid falling victim to such schemes.
“Authorities continue to urge the public to remain cautious and verify the legitimacy of financial transactions to avoid falling victim to such elaborate scams.”
