News
Businessman Scammed for $400,000 in Cryptocurrency, 3 Arrested in Hong Kong
Hong Kong police have arrested three individuals suspected of defrauding a businessman of HK$3.11 million, or about $399,000, in cryptocurrency by offering him three bundles of counterfeit HK$1,000 notes.
Officers reportedly confiscated 10,978 counterfeit HK$1,000 notes during a raid on the Mong Kok office where the fraudulent transaction took place last week.
Cryptocurrency Fraud Exposed
A source said The 44-year-old businessman was shown three bundles of what appeared to be HK$1,000 notes at the Nathan Road location, the South China Morning Post reported, before being instructed to transfer HK$3.11 million in Tether’s USDT stablecoin to a specified digital wallet.
An inside source said:
“With the exception of two genuine notes placed at the top and bottom of each bundle, the rest were counterfeit notes, known as training notes.”
The source also said that the businessman asked to inspect the banknotes. However, the two defendants, who appeared to be employees, refused, stating that they had not received instructions from the store manager via phone. After finding the behavior suspicious, the victim notified the police.
The defendants in question are a 24-year-old man and a 42-year-old woman. In addition to these two individuals, Hong Kong police later arrested another man after discovering the counterfeit banknotes in the office. The trio were arrested on charges of obtaining property by deception and possession of counterfeit banknotes.
Cryptocurrency fraud cases have surged in Hong Kong, with police officers seizing 1,693 “training notes” in three more cryptocurrency fraud cases.
Rise in cryptocurrency fraud forces Hong Kong to improve skills
Hong Kong has established itself as a major crypto hub in Asia. However, in addition to attracting capital, the city-state has also experienced a increase in fraudulent activities that have forced the authorities to increase their powers. Experts Note that Hong Kong has developed significant experience in cryptocurrency law enforcement, enabling authorities to effectively track money laundering activities involving digital assets.
At the same time, Hong Kong’s Securities and Futures Commission (SFC) has stepped up its oversight of suspicious crypto entities. Earlier this month, the securities regulator released warns against seven cryptocurrency platforms operating illegally in the region without proper licenses.
Since January 2020, the Hong Kong SFC has maintained a warning list, which currently includes 39 entries. In 2024 alone, 28 cryptocurrency exchanges have been reported. The latest additions to the list are Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT, and Bstorest.