Businessman defrauded of $400,000 in cryptocurrency, three arrested in Hong Kong

Hong Kong police have arrested three males for allegedly defrauding a businessman of HK$3.11 million (roughly US$399,000) in crypto property by offering him with three bundles of counterfeit HK$1,000 banknotes.

Police reportedly confiscated 10,978 counterfeit HK$1,000 notes throughout a raid on the Mong Kok workplace the place fraudulent transactions occurred final week.

Preventing Cryptocurrency Fraud

supply Tell In line with the South China Morning Publish, the 44-year-old businessman was proven three bundles of what seemed to be HK$1,000 banknotes on the Nathan Highway location and was then instructed to switch HK$3.11 million in Tether’s USDT stablecoin to a specified quantity. pockets.

To cite an insider,

“Apart from the 2 real banknotes on the prime and backside of every bundle, the others are all pretend banknotes, known as coaching banknotes.”

The supply additionally talked about that the businessman requested to examine the banknotes. Nonetheless, the 2 defendants, who seemed to be workplace staff, refused and mentioned they’d obtained no directions from the shop supervisor over the telephone. After the sufferer observed the suspicious conduct, he reported it to the police.

The defendants concerned are a 24-year-old man and a 42-year-old lady. Along with the 2 males, Hong Kong police later arrested one other man after discovering counterfeit foreign money within the workplace. Three folks had been detained on suspicion of property fraud and possession of counterfeit foreign money.

Hong Kong has seen a surge in fraud instances involving cryptocurrency transactions. In actual fact, police seized 1,693 “coaching notes” in three different fraud instances involving cryptocurrency transactions.

Rising cryptocurrency fraud forces Hong Kong to upskill

Hong Kong has grow to be Asia’s main cryptocurrency hub. Nonetheless, whereas attracting capital, the city-state additionally skilled Increase Fraudulent actions have pressured authorities to enhance their expertise. professional notes Hong Kong has gathered in depth legislation enforcement expertise in coping with cryptocurrencies, permitting authorities to successfully observe cash laundering actions involving digital property.

In the meantime, Hong Kong’s Securities and Futures Fee (SFC) has stepped up its supervision of suspicious cryptocurrency entities. Earlier this month, the securities regulatory company release A warning was issued towards seven cryptocurrency buying and selling platforms working illegally within the area with out correct licenses.

Since January 2020, the Hong Kong Securities and Futures Fee has maintained a warning listing, which at present contains 39 objects. In 2024 alone, 28 cryptocurrency exchanges had been flagged. The newest additions to the listing are Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT and Bstorest.