Hong Kong police have disclosed a cryptocurrency investment scam targeting older residents. An 80-something retired man clicked a fake link in a pop-up ad in June, downloaded a counterfeit app posing as a crypto platform called "Trust Wallet," and was later contacted by scammers pretending to be customer service. They lured him with promises of "high returns" and "making big money." According to police, he withdrew cash from banks, exchanged it for cryptocurrency at a crypto exchange shop, and over the following month and a half transferred ETH worth more than HK$5 million to wallets controlled by the scammers. He only realized he had been cheated after he could no longer withdraw funds from the fake app and the fake customer service cut off contact. Police urged families to pay attention to older relatives' internet habits and financial situations and to share anti-scam information proactively.

The European Union’s Markets in Crypto-Assets regulation, or MiCA, took full effect on July 1, triggering a broad compliance shift across the region’s crypto sector. After the rules came into force, more than 1,700 unlicensed crypto platforms were told to stop serving users and direct them toward licensed providers. At present, only 323 companies hold valid authorization. The transition affects roughly 10 million users who now need to move their assets. Regulators say scammers are exploiting that process by impersonating authorities and licensed exchanges, sending fake migration notices, and steering users toward fraudulent platforms. France’s financial markets regulator said fraudsters have posed as its staff and demanded money under the pretense of charging "management fees." The European Securities and Markets Authority has also confirmed that its identity and branding have been misused. Meanwhile, the Dutch Authority for the Financial Markets warned that migration from unlicensed exchanges has itself become an attack surface, urging users to verify providers through ESMA’s official register and remain cautious about unsolicited requests to transfer funds.

Hong Kong police said the city recorded 20,613 fraud cases of all types in the first half of the year, with total losses of about HK$3.5 billion. Among them, 2,151 were investment scam cases, accounting for roughly one-tenth of all fraud reports but causing HK$1.66 billion in losses. Police disclosed that one crypto-related investment scam alone led to losses of about HK$84 million. In that case, the victim was lured into making investments and transferred crypto assets into an electronic wallet provided by the other party, only to realize the fraud after being unable to withdraw the assets. Police also updated the status of the JPEX virtual asset fraud case, which remains under investigation. The case now involves about 2,800 victims and losses of about HK$1.6 billion. Since 2023, law enforcement authorities have arrested 81 people, with 29 charged with offenses including conspiracy to defraud, money laundering, and perverting the course of justice, according to Ming Pao as cited by Odaily.

Hong Kong police said they arrested 17 people in an operation codenamed "Flash Raid," including 14 men and three women aged between 20 and 54. The group included 13 Malaysians and four local residents, and officers searched three locations and seized HK$3.67 million in cash that police believe were crime proceeds. According to police, the scam ring recruited Malaysians from outside Hong Kong, arranged flights and accommodation, and used them as couriers. The suspects allegedly targeted elderly victims by posing as relatives, falsely claiming they had been arrested and needed bail money, then sending couriers to collect cash. Police said the group collected HK$4.67 million in fraudulent payments between June 4 and Aug. 14. The case involved 22 victims, with reported losses totaling HK$2.47 million. On Aug. 14, police separately arrested five more people, including four local residents and one Malaysian man, and recovered HK$200,000 in scam proceeds. Police also warned that some foreign exchange or virtual asset exchange shops had been used to process or move illicit funds.

Foresight News’ latest weekly Web3 roundup pulls together a dense mix of stories that shaped industry conversation over the past several days. At the center were the death of Quantum Fintech Group founder Harry Yeh in Paraguay, a fresh count showing that more than 300 Web3 projects have gone quiet over roughly 588 days, and renewed attention on Li Lin’s return through Avenir Group-backed UMX. Bitcoin also saw an old fault line reopen after BIP-110 triggered a chain split and cost Luke Dashjr his BIP editor role. The security section was just as busy. A DeFi whale lost roughly $25 million to $26 million in minutes, Trezor disclosed a ShipMonk-related data breach affecting close to 14,000 customers, Harmony was hit by an exploit that expanded ONE supply, and ZachXBT detailed a social-engineering scam tied to at least $5 million in losses. Foresight also reviewed Bybit’s effort to recover funds from the 2025 theft attributed to Lazarus Group, with recovered and frozen assets totaling about $78.9 million so far. On the project side, Vitalik Buterin’s updated Ethereum Strawmap elevated privacy and post-quantum security, Justin Drake said Ethereum would drop Poseidon at L1, Bitwise continued launching products while shutting eight ETFs and cutting staff, and Trump Media & Technology Group showed how far it has moved beyond a pure social-media business.

The White House Office of Trade and Manufacturing Policy on Aug. 13 released a 25-page report titled The Great Transshipment Scam, alleging that China uses more than 40 countries to reroute goods and avoid U.S. tariffs. The report estimated the annual scale of the practice at between $40 billion and $303 billion, but it also said those figures come from five separate methodologies and should neither be added together nor directly compared. Taiwan was placed in Tier 1, alongside Japan, South Korea, Canada, the European Union, India, Israel, and Mexico. The report described that group as large, diversified export platforms where transshipment risk is embedded within substantial volumes of legitimate trade. It also outlined economic impact estimates based on a $75 billion midpoint scenario, including a $113 billion to $150 billion annual GDP hit, displacement of 450,000 jobs, and $19 billion to $26 billion in lost federal tax revenue. The document also referenced a proposed AI-based enforcement system called Detective Border and said it is still too early to judge the net effect of the administration’s tariff and anti-transshipment measures.

Hawaii will ban crypto kiosk operators from accepting cash deposits to sell digital assets starting Oct. 1 under Act 224, signed by Governor Josh Green on July 9. The measure amends the state’s consumer protection law and treats each prohibited transaction as a separate offense. It does not shut the machines down outright: kiosks may still exchange one digital asset for another, and they may still let customers sell digital assets for U.S. dollars. The line lawmakers drew centers on fraud, especially scams aimed at older adults who are persuaded to send crypto to wallets controlled by criminals. A committee report cited investigations by the attorneys general of Washington, DC and Iowa that found more than 93% of reviewed kiosk transactions were scam-related. The FBI’s Internet Crime Complaint Center recorded 92 kiosk-related complaints from Hawaii residents in 2025, with adjusted losses of $3.85 million, nearly four times the prior year. CoinATMRadar lists about 57 crypto ATMs across four Hawaiian islands, while Texas and Delaware are also considering or advancing similar restrictions.

A court in Anshun, Guizhou, sentenced a man surnamed Zhao to seven months in prison and fined him 5,000 yuan after finding him guilty of fraud in a case tied to a fake cryptocurrency “airdrop project,” according to BlockBeats. Prosecutors said Zhao used promises of principal protection and high returns to persuade a friend, surnamed Zhang, to invest the remaining funds in his account. The case centered on an Aug. 23, 2025 pitch in which Zhao claimed an app had launched an airdrop program and said Zhang could earn 100 to 200 U tokens within two days. Zhao also told Zhang that any losses would be covered by him and said the money would be transferred to a public blockchain address. Believing that claim, Zhang converted $1,757 in his account into Ether and sent it through a wallet link provided by Zhao. Prosecutors said that wallet was not a public chain address as described. It was a personal account Zhao had registered using his girlfriend’s identity information. After the promised repayment date passed, Zhao allegedly delayed repayment with excuses including a wrong transfer link and the need for time to trace the funds. Zhang reported the matter to police on Sept. 7, 2025. The Pingba District People’s Procuratorate filed public prosecution on April 2 this year.