Hong Kong police have dismantled a major cross-border cryptocurrency scam, arresting 19 suspects who allegedly defrauded approximately 170 victims of around HK$11 million (US$1.4 million). The victims were not only from Hong Kong but also from mainland China, Taiwan and the United Kingdom.
Modus Operandi: Fake Apps and Social Media Glamour
According to police, the fraud syndicate rented office space in commercial buildings in Hong Kong and hired young people to promote the scam on social media platforms. The promoters displayed large amounts of cash, luxury yachts and sports cars to create an illusion of wealth and attract potential victims. Once a victim showed interest, the fraudsters directed them to download fake cryptocurrency investment apps or visit fraudulent websites, and instructed them to transfer fiat money or cryptocurrencies into specified accounts.
Superintendent Tam Wai-shun of the police's crime division explained: “The fraudsters used a fake app and some kind of fake web pages … in order to deceive people.” The fake platforms showed fictitious profits, making victims believe their investments were growing. However, when victims tried to withdraw their funds, they were unable to do so, and the fraudsters had disappeared. One victim lost up to HK$760,000, the largest single loss in this case.
Arrests and Seized Items
During a two-day operation, police arrested 11 men and 8 women aged between 18 and 31. The detainees included the alleged mastermind, technicians, managers and promoters of the scheme. Some are believed to have triad links, and 10 were identified as core members. They were arrested on suspicion of conspiracy to defraud and are being held for questioning.
Police seized nine computers, 128 smartphones, approximately HK$1.4 million in cash, about HK$50,000 in cryptocurrency, and a sports car linked to the case. These items will be used as evidence in further investigations.
Cross-Border Impact and Warnings
The scam's reach extended beyond Hong Kong, with victims in mainland China, Taiwan and the UK. Police warned that such cross-border crypto fraud often uses false promises, sophisticated technology and social media glamour to deceive victims. The public should remain vigilant and avoid unauthorized investment platforms or apps that promise high returns but prevent withdrawals.
The operation underscores Hong Kong police's commitment to combating cryptocurrency-related crimes. Authorities urge citizens to report suspicious investment activities immediately and to only use regulated and reputable cryptocurrency exchanges.