HK Police arrest 4 people, including minors, in HK$11M crypto scam.
In a major crackdown on financial fraud, Hong Kong police have arrested four individuals, including a 14-year-old boy, for participating in a syndicate that defrauded cryptocurrency owners using fake currency notes.
According to local media reports, the operation resulted in a loss of up to $11 million ($1.4 million). The arrests are part of law enforcement efforts to combat crypto-related fraud in the region.
Fraudsters arrested.
Commercial Crime Bureau Chief Inspector Lo Yun Shan said on July 28 that the latest arrests bring the number of individuals arrested in connection with these scams to 14 since October last year.
The suspects, aged between 14 and 39, were arrested on July 26 for forging, possessing and using 5,000 fake currency notes.
The police detailed the nature of the syndicate structure, with each member having a distinct role. Two of the suspects were found to be masterminds of buying counterfeit currency from a mini-storage facility in Mong Kok, while inspectors approached a nearby location posing as a legitimate business.
A famous cryptocurrency investor lured victims to offers of digital currency above the current market value. They also target potential victims online.
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The scheme involved inviting victims to a fake store where counterfeit HK$1,000 ($128) banknotes were displayed. Only the top and bottom notes were real, the whole stack was real, the way he tricked his victims. The suspects insisted on online transactions to settle the deal and prevented the victims from opening the pile.
Money laundering in Hong Kong
After the cryptocurrency was transferred, the fraudsters quickly withdrew the assets from the account and refused to pay, leaving victims with nothing. Chief Inspector Lo said these methods have become common recently and the group and others have been defrauding 12 victims of HK$11 million ($1.4 million) since October 2023, when they were arrested.
The arrest highlights Hong Kong's ongoing battle against financial fraud, particularly digital currencies.
Meanwhile, a global manhunt is underway for two prominent Hong Kong crypto influencers formerly linked to the Dubai-based JPX exchange, prompting Interpol to take action as they face charges of theft, fraud and money laundering.
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