Hong Kong Police Arrest Four in Crypto Scam Involving Fake Banknotes and Underage Suspect

Authorities recently arrested several individuals as part of a broader crackdown on crypto-related scams, which have seen a worrying increase in the region. According to reports, these operations have resulted in losses amounting to HK$11 million (approximately US$1.4 million). The suspects, ranging in age from 14 to 39, face charges of conspiracy to defraud, possessing, and using around 5,000 counterfeit banknotes.

Importantly, Chief Inspector of the Commercial Crime Bureau, Lo Yuen-shan, disclosed that these arrests have increased the total number of individuals apprehended in connection with these scams to 14 since October of the previous year. The police operation on July 26 significantly highlighted the organized nature of the syndicate, with roles meticulously assigned to each member. Moreover, the authorities are intensifying efforts to curb such fraudulent activities. As a result, the community hopes for a reduction in these crimes.

After the cryptocurrency transfer, the scammers quickly moved the assets out of the account and refused to pay, leaving the victims with nothing. Chief Inspector Lo noted that these tactics have become increasingly common, with the group and others defrauding 12 victims of HK$11 million from October 2023 until the time of the arrest.

The arrests underscore the ongoing battle against financial fraud in Hong Kong, particularly involving digital currencies. In a related development, authorities have launched a worldwide manhunt for two well-known Hong Kong crypto influencers linked to the embattled JPEX exchange in Dubai. Allegations of theft, fraud, and money laundering against them have prompted Interpol to take action.