Hong Kong authorities recently shut down a massive cryptocurrency investment scam that defrauded unsuspecting victims of approximately HK$360 million (approximately $46.35 million). The incident took place at a factory in Hong Kong's Hung Hom district.
Police raids last week resulted in the arrest of 27 people aged between 21 and 34. They are charged with conspiracy to commit fraud and possession of a firearm. Several of those detained are digital media graduates from local universities, and others are believed to be connected to three local professional groups.
According to the Internet Crime Complaint Institute, global losses from cryptocurrency fraud will increase to $3.96 billion by 2023, a 53% increase compared to $2.57 billion by 2022. In Hong Kong, fraud and fraud accounted for 43.9% of all crimes by 2023. quarter of the year.
Superintendent Yew Wing-ting, head of the New Territories South Crime Command, said that although in the southeast, it is difficult to find “a very large, well-organized, carefully divided and physically operated cross-border fraud center.” It's rare,” he said. Asia, India, Dubai Similar scams have also been reported in Sri Lanka and other countries. However, this growth pattern was unique to Hong Kong.
The operation was successful and police seized various items, including training manuals on how to commit fraud. The operation is similar to the infamous “pork shop” scam, in which the group first contacts victims on various social media, tries to build a relationship, and then tricks the victims into investing in a fake cryptocurrency platform. It was.
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