Hong Kong police have arrested four individuals, including a 14-year-old, involved in a syndicate that defrauded cryptocurrency owners of HK$11 million （US$1.4 million）.
Points
- Four individuals, including a 14-year-old, arrested for HK$11 million crypto fraud.
- Syndicate used counterfeit banknotes to defraud victims.
- Ongoing efforts by HK police to combat crypto-related scams.
In a major crackdown on financial fraud, Hong Kong police have arrested four individuals, including a 14-year-old
, for their involvement in a syndicate that defrauded cryptocurrency owners of HK$11 million （US$1.4 million）.
Scam Masterminds Arrested: Chief Inspector of the Commercial Crime Bureau, Lo Yuen-shan, revealed that the latest arrests bring the total number of individuals apprehended in connection with these scams to 14 since October of last year. The suspects, aged between 14 and 39, were detained on July 26, on charges of conspiracy to defraud and possession of counterfeit banknotes.
The police described the structured nature of the syndicate, where specific roles were assigned to each member. Two suspects were identified as the masterminds, responsible for procuring fake banknotes from a mini storage facility in Mong Kok and setting up a fake business location nearby. By impersonating a well-known cryptocurrency investor, they attracted victims with offers above the market price for digital currencies, targeting potential victims online.
Modus Operandi: The scheme involved inviting victims to the fake store, where they were shown stacks of counterfeit HK$1,000 （$128） banknotes. Only the top and bottom notes were real, deceiving victims into believing the entire stack was genuine. The suspects insisted on online transactions to settle the deals, prohibiting victims from untying the stacks.
Financial Fraud in Hong Kong: Once the cryptocurrency was transferred, the scammers swiftly moved the assets out of the account and refused to pay, leaving the victims empty-handed. Chief Inspector Lo noted that these tactics were common in recent cases, with the group and others defrauding 12 victims of HK$11 million from October 2023 until the arrest.
This incident highlights the ongoing battle against financial fraud in Hong Kong, especially those involving digital currencies. A worldwide manhunt is also underway for two well-known Hong Kong crypto influencers linked to the embattled JPEX exchange in Dubai. They face allegations of theft, fraud, and money laundering, prompting Interpol to take action.
解説
- The arrests mark a significant step in combating cryptocurrency-related fraud in Hong Kong, reflecting the authorities’ commitment to tackling financial crimes.
- The use of counterfeit banknotes and fake business setups underscores the sophisticated tactics employed by scammers.
- Victims should be vigilant when dealing with offers that seem too good to be true, especially in the cryptocurrency market.
- This case serves as a reminder of the importance of conducting thorough due diligence and using secure, reputable platforms for transactions.