Hong Kong authorities recently shut down a major cryptocurrency investment scam that duped unsuspecting victims of about HK$360 million (about $46.35 million) The operation was conducted at a factory in the Hong Hom area of the city.
27 people, aged between 21 and 34, were arrested in the police operation last week. They are charged with conspiracy to commit fraud and possession of a firearm. Several of those detained were digital media graduates from local universities, while others are thought to be linked to three local professional groups.
According to the Internet Crime and Complaints Institute, global losses from crypto fraud rose to $3.96 billion by 2023, an increase of 53% compared to $2.57 billion by 2022. In Hong Kong, fraud and fraud accounted for 43.9% of all crimes in the first quarter of this year.
The New Territories South Crime HQ Superintendent Yiu Wing-Qin said, “It is rare to find a cross-border fraud center that is quite large, well-organized, has a careful division of labor, and operates physically in Hong Kong” although Southeast Asia, India’s, Dubai Similar frauds have been reported elsewhere in, Sri Lanka, etc. However, this increased pattern was unique to Hong Kong.
In the successful operation, police seized various items, including training manuals on how to commit the scam. The operation was similar to the infamous “pig butcher” scam, where the group would first contact the victims on different social media and try to build a relationship with them, and then they would make the victims invest in fake crypto platforms.
