A group of 27 suspects, aged 21 to 34, have collaborated with foreign fraud organizations and computer experts to create fake crypto investment platforms.
Hong Kong cracks down on "romance scam" crypto investment, seizing $46 million. Image: IBTimes UK
The Hong Kong police have just cracked down on a $46.3 million crypto fraud case and arrested 27 suspects. The case was carried out through a special campaign called "Secret Word".
In a raid on the gang's control center in the Hung Hom district, more than 100 police officers seized 100 mobile phones, nearly $26,000 in cash, a red Richard Mille watch ($257,400) and a gold Rolex ($38,600).
The group of suspects used deepfake technology, disguising themselves as attractive women to "trap" men into investing in fake crypto websites. The fraud gang is aged 21 to 34, some are digital media graduates from local universities, and a few are suspected to have ties to the Triad Society.
According to senior police officer Iu Wing Kan, the criminal group operated very discreetly and required victims to transact in cryptocurrencies, avoiding bank accounts, making it more difficult to trace the flow of funds. The victims are not only Hong Kong citizens, but also people from India, Singapore and Malaysia.
Typically, this type of crime is only "prevalent" in Chinese gangs in Southeast Asia. However, it is unclear how they have spread to Hong Kong, especially when the local police have repeatedly warned the public to be vigilant against phone scams.
Mr. Yiu Wing-kin, Director of the South New Territories Crime Headquarters, shared:
"It is very rare to uncover a large-scale, well-organized and clearly divided cross-border fraud organization operating in Hong Kong."
However, this is not the only case, similar fraud cases have appeared in the city. In early August, Hong Kong cracked down on a money laundering ring using crypto, seizing up to $192 million. By the end of that month, the special district police further arrested 6 Malaysians and 5 local residents involved in a $7.8 million phone scam. This group was behind 4 operating centers in Hong Kong.Crypto-related fraud cases are on the rise globally. The US Federal Bureau of Investigation (FBI) recorded a 45% increase in crypto fraud losses in 2023 compared to the same period last year. According to the Internet Crime Complaint Center (IC3), the actual figure may be even higher. In Hong Kong alone, fraud and scams accounted for 43.9% of the total reported crimes in the first half of this year.
Compiled by Coin68
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