14-year-old Among Arrested Hong Kong Crypto Gang

By Mark Hunter

2 weeks agoMon Jul 29 2024 10:05:16

Reading Time: 2 minutes

• Hong Kong police have arrested four individuals, including a 14-year-old, for involvement in a $1.4 million crypto fraud syndicate
• The arrests have brought the total number of apprehended individuals for similar offenses to 14 since last October
• The syndicate has used fake banknotes in fake physical crypto exchanges to create the illusion of wealth

Hong Kong police have arrested four individuals, including a 14-year-old, for their alleged involvement in a HK$11 million ($1.4 million) crypto fraud syndicate using fake banknotes. Chief Inspector Lo Yuen-shan of the Commercial Crime Bureau revealed on Sunday that the arrests brought the total number of individuals apprehended for similar offenses to 14 since October of last year. The fraud involved setting up fake physical crypto exchanges, using fake banknotes to give the allusion of masses of generated wealth.

Counterfeit Notes Used to Dupe Victims

The four suspects, aged between 14 and 39, were detained on Friday on charges of conspiracy to defraud and possession and use of 5,000 counterfeit banknotes. Lo explained that the suspects operated as an organized syndicate with clearly defined roles; two were the masterminds who sourced the fake banknotes and set up fake cryptocurrency exchange shops, targeting victims online, while the others lured victims into the net.

The police detailed the operations of the syndicate, noting that the two masterminds dressed up a premises to resemble a legitimate cryptocurrency exchange business. They also impersonated a well-known cryptocurrency investor, offering deals above market value to attract victims. Upon luring the victims to their location, the suspects displayed stacks of fake HK$1,000 banknotes, only the top and bottom of which were authentic. They prevented the victims from thoroughly examining the stacks, creating the illusion of a large sum of money ready for the transaction.

After gaining the victims’ trust, the suspects convinced them to complete the transactions online. Once the cryptocurrency was transferred, the criminals immediately moved the digital assets out of the account and refused to pay the victims. This tactic has become increasingly common, with the group and others suspected of defrauding 12 victims of HK$11 million since last October.

Young People Warned Against Lure of Quick Money

Senior Inspector Mak Wai-kwong issued a stern warning to young people, particularly during the summer holidays, against being lured into criminal activities with promises of quick money. “Young people should be aware of the traps of being recruited to get involved in scams,” he emphasized .

Inspector Mak urged the public to be vigilant and to check for shimmering patterns on banknotes to verify their authenticity. In Hong Kong, the production, circulation, or use of counterfeit notes carries a maximum penalty of 14 years in prison.