Recently, the Hong Kong police arrested three individuals suspected of defrauding a businessman out of HK$3.11 million in crypto assets. The trio allegedly offered him three bundles of counterfeit HK$1,000 banknotes in exchange for the digital currency. During a raid on the Mong Kok office where the fraudulent transaction took place, officers confiscated 10,978 fake banknotes.
According to sources, the 44-year-old businessman was shown three bundles of what appeared to be genuine banknotes at the Nathan Road location. However, upon closer inspection, it was revealed that only two banknotes in each bundle were legitimate, with the rest being counterfeit “training notes.” When the victim requested to examine the banknotes further, the office employees who were involved in the transaction refused, claiming they had not received instructions from the store manager.
The accused individuals, a 24-year-old man and a 42-year-old woman, were arrested on the spot. Another man was also detained after counterfeit notes were discovered in the office. The trio now faces charges of obtaining property by deception and possession of counterfeit banknotes. This incident is part of a growing trend of deception involving cryptocurrency transactions in Hong Kong.
Hong Kong has established itself as a prominent crypto hub in Asia, attracting significant capital. However, along with this growth comes an increase in fraudulent activities. To combat this, authorities have been ramping up their efforts to crack down on illegal practices. The Securities and Futures Commission of Hong Kong (SFC) has been actively monitoring suspicious crypto entities operating without proper licenses. In 2024 alone, 28 cryptocurrency exchanges were flagged by the SFC for illegal activities. Additionally, the SFC maintains an alert list of 39 entries, with the recent additions of Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT, and Bstorest.
The case of the trio arrested for crypto fraud in Hong Kong highlights the growing need for stricter regulations and oversight in the cryptocurrency industry. As digital assets continue to gain popularity, it is essential for authorities to stay ahead of fraudsters and protect investors from falling victim to scams.