Hong Kong Police Bust Crypto Fraud Ring, Arrest 14-Year-Old
In a recent crackdown on crypto fraud, Hong Kong police have arrested four individuals, including a 14-year-old boy, for allegedly using counterfeit banknotes to defraud victims. This brings the total number of people detained in similar cases since October 2022 to 14, with total losses amounting to HK$11 million (US$1.4 million).
The syndicate operated by sourcing fake banknotes and setting up bogus cryptocurrency exchange shops to lure victims. The two masterminds behind the scheme sourced the counterfeit notes and identified potential victims online, posing as reputable cryptocurrency investors. They offered enticing deals above the cryptocurrency market rate, drawing unsuspecting individuals to their fake exchange setups.
Once victims were enticed to the bogus exchange premises, they were shown stacks of counterfeit HK$1,000 banknotes, only the top and bottom of which were authentic. This display was intended to convince the victims of the transaction’s legitimacy.
After gaining their trust, the fraudsters persuaded the victims to finalize online transactions. Upon cryptocurrency transfer, the suspects swiftly moved the assets out of the victims’ accounts, reneging on the payment.
Crypto Scam Prevention Tips
- Be wary of individuals offering deals significantly above the market rate.
- Verify the authenticity of banknotes before engaging in any transaction.
- Only use reputable cryptocurrency exchanges.
- Never share your private keys or seed phrases with anyone.
The authorities’ swift action underscores the serious penalties associated with the production, circulation, or use of counterfeit currency, which carries a maximum sentence of 14 years in prison in Hong Kong.
The police will continue their investigations with efforts to break up such syndicates, with a view to protecting members of the public from scams of this nature.
