CoinVoice has recently learned that according to SCMP, Hong Kong police have arrested four people, including a 14-year-old teenager, in an operation to crack down on a criminal group suspected of using counterfeit banknotes to defraud victims of cryptocurrencies.

Police said two of the four suspects were the masterminds, responsible for finding counterfeit money and locations as fake cryptocurrency trading stores, as well as finding victims online. They invited victims to the store and showed them piles of counterfeit money to show that they could easily settle transactions without handing over any cash. After the suspects gained the victims' trust, they persuaded them to conduct transactions online. Once the cryptocurrency was transferred, the suspects immediately transferred the assets out of the account and refused to pay.

This tactic has been common in recent cases, with 14 people arrested for defrauding 12 victims of HK$11 million between October last year and last Friday. [Original link]