Three Arrested in Hong Kong for Crypto Fraud
Three individuals have been apprehended by the Hong Kong police for allegedly tricking a businessman out of HK$3.11 million in crypto assets. The scammers offered the victim three bundles of fake HK$1,000 banknotes in exchange for the digital currency.
Confiscation of Counterfeit Banknotes
Law enforcement officers seized a total of 10,978 counterfeit HK$1,000 banknotes during a raid on a Mong Kok office where the fraudulent transaction occurred. The businessman, aged 44, was lured in by the appearance of the banknotes and was persuaded to transfer the funds in Tether’s USDT stablecoin to a specific digital wallet.
An informant revealed, “The fake banknotes were cleverly placed within the bundles, with only two genuine notes visible on the top and bottom of each stack. The rest were imitation bills used for training purposes.”
Despite the victim’s request to inspect the banknotes, the fraudsters refused to comply and pressured him into completing the transaction. The suspects, who posed as legitimate office workers, were later arrested by authorities.
Crypto Fraud on the Rise in Hong Kong
Recently, a case of deception involving counterfeit banknotes has shocked the residents of Hong Kong. The incident unfolded when employees at a local store refused to accept payment from a customer, claiming they had not received instructions from the store manager via phone. Sensing something fishy, the victim immediately alerted the police.
Suspects Apprehended
The accused individuals, a 24-year-old man and a 42-year-old woman, were taken into custody by the Hong Kong police. Another man was also arrested after counterfeit notes were discovered in the office. The trio now faces charges of obtaining property by deception and possession of counterfeit banknotes.
Crypto Fraud Epidemic
Instances of deception involving crypto transactions are on the rise in Hong Kong. In a separate investigation, law enforcement seized 1,693 “training notes” in connection with fraudulent crypto transactions. This surge in fraudulent activities has prompted authorities to enhance their skills in combating crypto fraud.
Hong Kong’s Law Enforcement and Oversight of Cryptocurrency Entities
Hong Kong has developed a strong expertise in law enforcement when it comes to dealing with cryptocurrency, allowing authorities to effectively track money-laundering activities involving digital assets.
Increased Oversight by the Securities and Futures Commission
The Securities and Futures Commission of Hong Kong (SFC) has also stepped up its monitoring of suspicious cryptocurrency entities. In a recent move, the securities watchdog issued warnings against seven crypto trading platforms operating without proper licenses in the region.
Alert List and Recent Additions
Since January 2020, the Hong Kong SFC has been maintaining an alert list, which currently comprises 39 entries. In 2024, 28 cryptocurrency exchanges were flagged for suspicious activities. The latest entities added to the list include Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT, and Bstorest.
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