Hong Kong police have taken into custody three employees of a currency exchange shop who are suspected of engaging in fraudulent activities.
This followed an incident where a customer at the shop reportedly encountered stacks of “hell money” before executing a cryptocurrency transfer worth approximately HK$1 million.
Hong Kong Authorities Arrest 3 for Crypto Fraud
On Wednesday, Hong Kong’s technology crime division apprehended three individuals aged between 31 and 34. The authorities seized 3,000 hell banknotes, a safe, and a note-counting machine from a store in Tsim Sha Tsui. Hell banknotes, used in traditional Chinese rituals as offerings to ancestors or deities, were among the confiscated items.
The arrest followed a report from a 35-year-old man on April 12. The man alleged that he had sold about HK$1 million worth of Tether (USDT) at a Tsim Sha Tsui shop but could not retrieve the cash.
Later, an investigation revealed that the suspects had presented stacks of hell banknotes, each with a face value of HK$500. They then persuaded the victim to transfer the USDT to a cryptocurrency wallet they provided.
Upon receiving the virtual currency, the suspects failed to fulfill their agreement. They gave various excuses and swiftly departed from the scene, leaving the victim empty-handed.
In Hong Kong, fraud carries a penalty of up to 14 years imprisonment. Meanwhile, individuals charged with obtaining property by deception could face a maximum sentence of 10 years.
Following the incident, Hong Kong authorities have asked residents to exercise caution when conducting transactions. They have also advised them to opt for reputable cryptocurrency exchange shops and inspect banknotes for security features to prevent falling victim to such scams.
Hong Kong Crypto Scams Are a Growing Pain
This is not the first crypto fraud and scam incident in Hong Kong. Hong Kong authorities recently arrested three teenagers and rescued a 19-year-old who had been assaulted and unlawfully detained.
The victim was lured with the promise of meeting people and trading crypto assets. Instead, upon arriving at a room in the Harbour Grand Kowloon Hotel on Tak Fung Street, the suspects demanded HK$180,000 (approximately $23,000) from crypto trading profits.
In another incident, a 46-year-old housewife lost HK$7.1 million ($908,000) after fraudsters first contacted her via Instagram, asking her to invest in cryptos through a link to a scam platform.
One bad actor posed as a customer service representative from the fake trading platform, convincing her to transfer over $900,000 into 15 different bank accounts from August 19, 2022, to March 4, 2023. However, throughout this period, she has received no returns on her investments.
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