Hong Kong police have detained three employees of a money exchange shop on suspicion of committing fraud.
This follows an incident in which a customer at the store reportedly encountered a large amount of “hell's money” before completing a cryptocurrency transfer worth approximately HK$1 million.
Hong Kong authorities arrest three people for cryptocurrency fraud
On Wednesday, Hong Kong's technology crime unit arrested three people aged between 31 and 34. Authorities seized 3,000 Hell notes, a safe and a note counting machine from a store in Tsim Sha Tsui. Among the confiscated items were hell banknotes, which are used as offerings to ancestors and gods in traditional Chinese ceremonies.
The arrest followed a tip on April 12 from a 35-year-old man who claimed to have sold approximately HK$1 million worth of Tether (USDT) at a store in Tsim Sha Tsui, but was unable to recover the cash.
A subsequent investigation revealed that the suspects presented a bundle of hell notes with a face value of HK$500. They then convinced the victim to transfer his USDT to the cryptocurrency wallet they provided.
When the suspects received the virtual currency, they did not honor the agreement. They made various excuses and promptly left the scene, leaving the victim empty-handed.
In Hong Kong, fraud is punishable by up to 14 years in prison. On the other hand, individuals charged with obtaining property by deception could face up to 10 years in prison.
Following the incident, Hong Kong authorities urged residents to be careful when making transactions. He also advised people to choose a reputable cryptocurrency exchange shop and check the security features of banknotes to avoid falling victim to such scams.
Cryptocurrency fraud in Hong Kong becomes serious
This is not the first case of cryptocurrency fraud or fraud in Hong Kong. Hong Kong authorities recently arrested three teenagers and rescued a 19-year-old boy who had been assaulted and illegally detained.
Victims were lured with promises to meet people and trade crypto assets. Instead, when the suspects arrived at a room at the Harbor Grand Kowloon Hotel on Tuc Fong Street, they demanded HK$180,000 (approximately $23,000) from the proceeds of the cryptocurrency transactions.
In another incident, a 46-year-old housewife lost HK$7.1 million ($908,000) after a scammer first contacted her via Instagram and asked her to invest in cryptocurrencies through a link to a scam platform. .
A bad actor posed as a customer service representative from a fake trading platform and convinced the attackers to transfer more than $900,000 to 15 different bank accounts between August 19, 2022 and March 4, 2023. However, throughout this period, she has not received a refund. her investment.
