Hong Kong Police Dismantle $46 Million Cryptocurrency Scam

According to CoinDesk, Hong Kong police have dismantled a cryptocurrency investment scam worth HK$360 million ($46.35 million) operating out of an office in the Hung Hom area. The operation led to the arrest of 27 individuals aged between 21 and 34, suspected of conspiracy to defraud and possession of weapons. Among those arrested were local university graduates in digital media and individuals with alleged links to triad groups. In a press conference on October 14, police highlighted the rarity of such large-scale, well-organized scam operations in Hong Kong. Superintendent Yiu Wing-kin of the New Territories South Crime Headquarters noted that while similar scam centers have been found in Southeast Asia, India, Dubai, and Sri Lanka, it is uncommon to find such operations physically based in Hong Kong. The global impact of cryptocurrency investment frauds has been significant, with reported losses reaching $3.96 billion in 2023, a 53% increase from $2.57 billion in 2022, according to the Internet Crime Complaint Center. In Hong Kong, scam and fraud cases accounted for 43.9% of all reported crimes in the first half of this year. This recent bust is not an isolated incident. In late August, Hong Kong police arrested six Malaysians and five local residents involved in a HK$61 million ($7.8 million) phone scam. The group operated from four different centers within the city. During the latest operation, police seized training manuals that detailed the scam's execution. The scam resembled a typical 'pig butchering' scheme, where perpetrators contacted victims via social media, established romantic relationships, and then persuaded them to invest in a fraudulent cryptocurrency platform. The group reportedly collaborated with overseas scam operations and computer experts to design these fake investment platforms.