Crypto scammers in Hong Kong have stolen more than 1.4 million US dollars from their victims. How cleverly the four criminals went about it.
Hong Kong police have apprehended four individuals, including a 14-year-old, for their involvement in a sophisticated cryptocurrency fraud ring. The group allegedly used counterfeit banknotes to deceive cryptocurrency owners looking to sell their assets.
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According to the South China Morning Post, the fraud syndicate operated with a well-organized structure: two masterminds acquired the counterfeit banknotes and established a fake online crypto exchange, while the other two suspects collected the counterfeit notes from a warehouse. The masterminds also disguised a nearby building as a legitimate business.
The fraudulent scheme resulted in losses amounting to HK$11 million (US$1.4 million). These arrests are part of an ongoing police effort to tackle the growing issue of crypto fraud in the region.
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The gang’s method involved posing as prominent crypto investors and enticing victims with purchase offers above the market rate. In their sham business, they showcased stacks of counterfeit money for what appeared to be a seamless transaction.
“The suspects did not allow the victims to untie the stack of HK$1,000 banknotes because only the top and bottom ones were genuine,” explained Lo Yuen-shan, chief inspector of economic crimes. Once the victims transferred their cryptocurrencies, the scammers moved the funds from the wallet and refused to hand over any cash.
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With these latest arrests, a total of 14 individuals have been detained in Hong Kong since October of last year in connection with similar cryptocurrency scams.
Hong Kong remains one of Asia’s most significant financial hubs. Following the approval of Bitcoin and Ethereum ETFs, there has been ongoing speculation about when mainland Chinese investors will gain access to these financial products.
