Four people, including a 14-year-old kid, have been arrested by Hong Kong police in a major crackdown on crypto fraud for allegedly using fake banknotes to deceive victims. With this arrest, there have been 14 persons held in incidents identical to this since October of last year, and HK$11 million (US$1.4 million) has been lost in total.
The Commercial Crime Bureau’s Chief Inspector Lo Yuen-shan said on Sunday that suspects in the most recent arrests ranged in age from 14 to 39. They were detained on suspicion of conspiring to commit fraud and of possessing and using five thousand fake banknotes. Lo highlighted the syndicate’s organisational structure, outlining the clear division of responsibilities among its members.
The syndicate sourced fake banknotes and set up bogus cryptocurrency exchange shops to lure victims. The two masterminds behind the scheme sourced the counterfeit notes and identified potential victims online, posing as reputable cryptocurrency investors. They offered enticing deals above the cryptocurrency market rate, drawing unsuspecting individuals to their fake exchanges.
Crypto Exchange Scam Exposed
Once victims were lured to the fake exchange premises, they were shown stacks of counterfeit HK$1,000 banknotes with only the top and bottom notes being genuine. This display was meant to convince them of the transaction’s legitimacy.
After gaining their trust, the fraudsters persuaded the victims to finalize online transactions. Once the cryptocurrency was transferred, the suspects quickly moved the assets out of the victims’ accounts. They failed to make the promised payment.
Senior Inspector Mak Wai-kwong warned young residents about the risks of quick money schemes during the summer holidays. However, He stressed the importance of vigilance and urged residents to verify the authenticity of banknotes by checking for shimmering patterns, a common feature of genuine notes.
However, The authorities acted swiftly, highlighting the severe penalties for dealing with counterfeit currency. In Hong Kong, producing, circulating, or using fake money can lead to serious consequences. The maximum sentence for such offenses is 14 years in prison.
Inspector Mak emphasized the need for public vigilance in financial transactions, especially in the growing cryptocurrency sector. The police will continue efforts to dismantle these syndicates and protect the public from such scams.
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