Summary:
- Four individuals, including a 14-year-old, arrested for involvement in a $1.4M crypto fraud.
- Scheme involved using counterfeit banknotes to deceive cryptocurrency owners.
- Operation resulted in losses of up to HK$11 million (US$1.4 million).
- Arrests part of ongoing efforts to combat crypto-related scams.
In a significant crackdown on financial fraud, Hong Kong police have arrested four individuals, including a 14-year-old, for their involvement in a syndicate using counterfeit banknotes to defraud cryptocurrency owners. The operation, which resulted in losses of up to HK$11 million (US$1.4 million), highlights the rising trend of crypto-related scams in the region.
The suspects, aged between 14 and 39, were detained on July 26 on charges of conspiracy to defraud, possessing, and using 5,000 counterfeit banknotes. The elaborate scheme involved inviting victims to a fake store, where they were shown stacks of counterfeit HK$1,000 ($128) banknotes. Only the top and bottom notes were real, tricking victims into believing the entire stack was genuine. The scammers insisted on online transactions to finalize the deals, prohibiting victims from untying the stacks of notes.
Once the cryptocurrency was transferred, the scammers quickly moved the assets out of the account, leaving the victims with nothing. This latest operation by Hong Kong police underscores the need for increased vigilance and stringent measures to combat the rising tide of crypto-related fraud.
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