Three employees of a cryptocurrency exchange in Tsim Sha Tsui have been detained for allegedly defrauding a customer using fake ghost money.
Hong Kong police have detained three employees of a currency exchange shop suspected of engaging in fraudulent activities.
Previously, a customer at the store reported encountering a pile of "ghost money" when executing a cryptocurrency transfer worth about HK$1 million.
Hong Kong authorities arrest 3 for suspected cryptocurrency fraud
On Wednesday, Hong Kong's Technology Crime Department arrested three individuals aged between 31 and 34. Authorities seized 3,000 ghost money notes, a safe and a money counting machine from a store in Tsim Sha Tsui. Ghost money, which is a traditional Chinese ritual offering to ancestors or gods, was also seized.
The arrests came after a 35-year-old man filed a police report on April 12, claiming he sold about HKD 1 million of Tether (USDT) at a store in Tsim Sha Tsui but was unable to withdraw the cash.
Subsequent investigations revealed that the suspects showed the victims a pile of ghost money with a face value of HKD 500, and then persuaded the victims to transfer USDT to a cryptocurrency wallet they provided.
After receiving the virtual currency, the suspects failed to fulfill their agreement. They made various excuses and quickly left the scene, leaving the victims empty-handed.
In Hong Kong, fraud is punishable by up to 14 years in prison, while individuals charged with obtaining property by deception can face up to 10 years in prison.
Following this incident, Hong Kong authorities called on residents to be cautious when making transactions and advised them to choose reputable cryptocurrency exchanges and check the security features of banknotes to prevent falling victim to such scams.
Cryptocurrency fraud is a major concern in Hong Kong
This is not the first time that cryptocurrency fraud and scams have occurred in Hong Kong. Hong Kong authorities recently arrested three teenagers and rescued a 19-year-old victim who was attacked and illegally detained.
The victim was lured with the promise of meeting people and trading crypto assets. However, when he arrived at a room at the Jingang Haiyi Hotel on Jianyun Street, the suspects demanded 180,000 Hong Kong dollars (about 23,000 US dollars) in crypto trading profits.
In another incident, a 46-year-old housewife lost HK$7.1 million (about $908,000) after being contacted by scammers via Instagram and asked to invest in cryptocurrencies through a link on a fraudulent platform.
A malicious actor, posing as a customer service representative for a fake trading platform, convinced her to transfer more than $900,000 to 15 different bank accounts between August 19, 2022 and March 4, 2023. However, she received no return on her investment during this period.
Conclusion:
In the field of cryptocurrency, fraud cases occur from time to time, which brings great risks and troubles to investors and traders. In order to protect our property and information security, we should always be vigilant, choose reputable cryptocurrency trading platforms for trading, and avoid trusting strangers' promises and baits. I hope that in the future, relevant departments can strengthen supervision and crack down on cryptocurrency fraud, making this field safer and more reliable. #香港 #加密货币 #欺诈
