Three people have been taken into custody by the Hong Kong police for allegedly scamming a businessman out of HK$3.11 million, which is equivalent to about $399,000, in cryptocurrency. The suspects had tricked the businessman by showing him what appeared to be bundles of HK$1,000 banknotes, with only two genuine notes on the top and bottom of each bundle, and the rest being counterfeit “training notes.”
During a raid on the office in Mong Kok where the fraudulent transaction occurred, authorities seized a total of 10,978 fake HK$1,000 banknotes. The victim became suspicious when he was not allowed to inspect the banknotes further and alerted the police, leading to the arrests of a 24-year-old man, a 42-year-old woman, and another man involved in the scam.
This incident is part of a larger trend of deception cases involving cryptocurrency in Hong Kong. In response to the rising number of crypto fraud cases, authorities in Hong Kong have been enhancing their skills and oversight. The city has become a significant crypto hub in Asia, attracting investment but also fraudulent activities.
The Securities and Futures Commission of Hong Kong has been cracking down on suspicious crypto entities, issuing warnings against seven illegal crypto trading platforms operating without proper licenses in the region. The commission has maintained an alert list since January 2020, with 39 entries currently listed. In 2024 alone, 28 cryptocurrency exchanges have been flagged for operating illegally. The latest additions to the alert list include platforms like Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT, and Bstorest.
The increase in crypto-related fraud cases has prompted Hong Kong authorities to ramp up their efforts in combating money laundering activities involving digital assets. Law enforcement in the city-state has gained significant experience in dealing with crypto, enabling them to effectively trace illicit activities in the crypto space.
As the crypto industry continues to grow in Hong Kong, it is crucial for investors and traders to remain vigilant and only engage with licensed and regulated platforms to avoid falling victim to scams. By staying informed and following regulatory guidelines, individuals can protect themselves from potential fraudulent schemes in the crypto market.