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HomeSecurityHong Kong Authorities Crack Down on Crypto Fraud, Arrest 3 Suspects

Hong Kong Authorities Crack Down on Crypto Fraud, Arrest 3 Suspects

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Hong Kong’s technology crime division has taken a significant step in combating crypto fraud, arresting three individuals suspected of engaging in fraudulent activities at a currency exchange shop in Tsim Sha Tsui. The suspects, aged between 31 and 34, were apprehended on Wednesday and are facing charges of fraud and obtaining property by deception.

The investigation began when a 35-year-old man reported that he had sold approximately HK$1 million worth of Tether (USDT) at the shop but was unable to retrieve the cash. An investigation revealed that the suspects had presented stacks of “hell banknotes” to the victim, each with a face value of HK$500, and persuaded him to transfer the USDT to a cryptocurrency wallet they provided.

However, the suspects failed to fulfill their agreement, giving various excuses and leaving the victim empty-handed. Hong Kong authorities have warned residents to exercise caution when conducting transactions and to opt for reputable cryptocurrency exchange shops.

This is not the first crypto fraud incident in Hong Kong. In recent months, there have been several reported cases of crypto scams, including one where a 46-year-old housewife lost HK$7.1 million ($908,000) after fraudsters contacted her via Instagram, asking her to invest in cryptos through a fake trading platform.

Hong Kong authorities have urged residents to be vigilant and take steps to prevent falling victim to such scams. They have also advised individuals to inspect banknotes for security features and to opt for reputable cryptocurrency exchange shops.

The penalties for fraud in Hong Kong are severe, with a maximum sentence of 14 years imprisonment for fraud and 10 years for obtaining property by deception. The authorities are working to combat crypto fraud and protect residents from falling victim to these scams.

Takeaway:

  • Be cautious when conducting transactions and opt for reputable cryptocurrency exchange shops.
  • Inspect banknotes for security features to prevent falling victim to scams.
  • Be wary of unsolicited offers or requests to invest in cryptos.
  • Report any suspicious activity to the authorities.

By staying informed and taking steps to protect yourself, you can minimize the risk of falling victim to crypto fraud.

Source: CryptoPotato

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