Hong Kong police arrested four people for using fake banknotes to defraud crypto traders of $1.4 million.
Four individuals, including a 14-year-old, were recently apprehended by the Hong Kong police for their involvement in a syndicate that employed counterfeit banknotes to defraud cryptocurrency proprietors. According to reports, the arrests on July 26 underscore the increasing prevalence of crypto-related schemes in the region.
According to Chief Inspector Lo Yuen-shan of the Commercial Crime Bureau, the most recent arrests have resulted in the detention of 14 individuals in connection with such schemes since October of the previous year.
The suspects, who are aged 14 to 39, are currently facing charges of conspiracy to defraud and possession of 5,000 counterfeit banknotes.
In the interim, Senior Inspector Mak Wai-kwong issued a warning to young individuals who are considering committing similar offenses:
“During the summer break, young individuals are at liberty and should be cautious of the potential for recruitment into scams.”
Lo disclosed that a pair of scammers impersonated a well-known cryptocurrency trader in order to entice victims.
Additionally, they provided prices that exceeded the current market value of crypto assets. In order to deceive unsuspecting users, the fraudsters would unveil an abundance of banknotes to victims who visited their establishment.
After gaining their trust, the fraudsters would then encourage the victims to transfer their digital assets to an account controlled by the syndicate.
12 inhabitants of Hong Kong lost digital assets valued at $1.4 million to the scammers between October of last year and July 26, as reported by the Hong Kong police. According to Hong Kong legislation, the utmost jail sentence for producing and circulating is 14 years.
