- 25 men and women have been taken in custody by Hong Kong authorities.
- The group is deemed responsible for 39 crypto scams cases.
- 23 men and 16 women, aged between 19 and 72, lost almost $1 million to these scammers.
Hong Kong Police have arrested 25 men and women involved in a cryptocurrency scam and money laundering operation. Authorities report that digital asset scams represent 7% of all fraud cases in the Special Administrative Region (SAR) of China.
According to a report , the Wong Tai Sin District Crime Department conducted an enforcement operation codenamed “Lian Dou” from September 19 to 26. This operation resulted in the arrest of 25 individuals allegedly involved in crypto scams and money laundering, perpetrating 39 scams and defrauding victims of over 7 million yuan (almost $1 million).
These 39 cases involved 23 men and 16 women, aged between 19 and 72, including clerks, students, and housewives, who were scammed out of their savings.
Read also: Indonesian Authorities Bust Crypto Scam with Binance and Tokocrypto’s Help
Senior Inspector Mak Ning-fung led the investigation, revealing that the group consisted of 18 men and 7 women, aged between 19 and 65, mostly unemployed, waiters, or construction workers. Those arrested included a group mastermind, three core members, and 21 puppet account holders, suspected of “obtaining property by deception” and “money laundering.”
Authorities Seize Electronic Devices and Cold Wallets
Hong Kong authorities seized more than 20 electronic devices from the group mastermind’s residence, along with two cryptocurrency cold wallets potentially linked to the case. The group allegedly began its activity in May 2023, using puppet accounts to open bank accounts and crypto exchange accounts simultaneously.
The core members of the group had a clear division of labor. After scamming victims through various schemes and depositing money into designated puppet bank accounts, some core members immediately used the associated exchange accounts to conduct P2P transactions, purchasing crypto and transferring it to their own wallets.
Fake Crypto Exchange Shops Target Unsuspecting Investors
Coin Edition previously reported that many scammers in Hong Kong have set up fake cryptocurrency shops where investors go to exchange their money for crypto, only to have their funds stolen. In one such case, the victim lost $125,000 .
According to Hong Kong authorities, these shops advertise incredible exchange rates and offers, luring investors who are then robbed, and the criminals disappear.
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