Hong Kong authorities have arrested four individuals, including a teenager, linked to a crypto scam that resulted in HK$11 million (US$1.4 million) in losses.
Local media reports indicate that these arrests were made on July 26 and involved individuals aged 14 to 39, who now face charges of conspiracy to defraud and possessing and using 5,000 fake banknotes.
Chief Inspector Lo Yuen-shan of the Commercial Crime Bureau revealed that these arrests are part of an ongoing investigation that has seen 14 arrests since October 2023.
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The police explained that two ringleaders obtained the fake banknotes from a storage unit in Mong Kok and set up a nearby site to pose as a legitimate crypto exchange shop. Pretending to be well-known crypto investors, the fraudsters attracted victims with offers that exceeded current market rates for digital assets.
At the fake business premises, they presented bundles of HK$1,000 banknotes, with only the top and bottom notes being real, creating the illusion of authenticity. Victims were pressured to complete transactions online and were not allowed to inspect the stacks thoroughly.
Once the cryptocurrency was transferred, the scammers quickly withdrew the assets without providing any payment, leaving the victims defrauded. They further extended their reach by targeting potential victims through online platforms.
Hong Kong police continue to intensify efforts to dismantle such criminal networks and protect citizens from cryptocurrency fraud.
In other news, a recent report from Elliptic Research has found that Huione Guarantee, an online marketplace, facilitates online scams across Southeast Asia.
