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- Another Crypto Scam uncovered by Hong Kong Police
- Fraudsters managed to dupe 170 victims of about $11 million Hong Kong dollars (US$1.4 million).
- The victims were mainly from Hong Kong, Taiwan, and Mainland China.
Nineteen persons have been arrested in Hong Kong and charged for duping 170 people in Hong Kong, China, Taiwan, and the U.K.
Of late, the Decentralized Finance sector, once thought to be scam-free with top-notch security, is proving wrong. The incidence of cryptocurrency fraud is rising, and hacks have hit numerous exchanges in the past few days.
Nineteen people have been arrested in Hong Kong in connection with a cryptocurrency scam. According to the police in Hong Kong, the fraudsters used fake apps and fake web pages to deceive people.
Fraudsters managed to dupe 170 victims of about $11 million Hong Kong dollars (US$1.4 million)
The crypto scam was operated by the fraudsters and managed to dupe 170 victims of about $11 million Hong Kong dollars (US$1.4 million). The victims were mainly from Hong Kong, Taiwan, and Mainland China.
The 19 persons arrested included eleven men and eight women, aged 18 and 31, and were arrested for conspiracy to defraud this week. Police said that some of the fraudsters were triad members, and 10 were core members of the syndicate.
Fraudsters hired youngsters to flaunt opulence and lure victims
The police detained the modus operandi of the fraudsters. The fraudsters first rented space in commercial buildings in Hong Kong to run their operation. To give credibility to their false flag operation, they also hired youngsters to promote the scam by showing off cash, a yacht, and a sports car on social media to lure other victims.
The scamsters zeroed on their victims after extensive background checks. They instructed the victims to transfer money and cryptocurrencies into their bank accounts and crypto wallets by either going to a fraudulent website or downloading fake cryptocurrency apps. They claim that the funds would be used for investments.
Tam Wai-shun, superintendent from the police’s crime division, said that the scamsters used fake apps and web pages to deceive people. The victims account appeared on the fake apps, and they were showing false information that the victims were making profits.
The victims came to know about the scam when they tried to withdraw their funds but could not do so. The customers came to know that they had been duped, but the fraudsters had already vanished with the customers’ money and cryptocurrencies by then. The officers said that one of the victims lost up to HK$760,000, marking the most significant loss in a single case.
The police conducted a two days operation. The police seized nine computers, 128 smartphones, cash worth HK$1.4 million, cryptocurrency worth around HK$50,000, and a sports car in connection to the case.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
