Hong Kong Crypto Buyer Scammed in Alleged HK$1M ‘Hell Cash’ Scheme

• Three staff of a Tsim Sha Tsui crypto change store had been detained for allegedly scamming a buyer with counterfeit “hell banknotes.”
• The sufferer transferred HK$1 million value of USDT, however the suspects didn’t present the agreed money, resulting in their arrest.
• The HKPF seized 3,000 hell banknotes and suggested residents to make use of licensed exchanges and examine banknotes to keep away from fraud.

In keeping with stories by the Hong Kong Police Pressure (HKPF), three staff of a crypto change store in Tsim Sha Tsui have been detained following allegations of a cryptocurrency rip-off. 

As revealed by South China Morning Publish, the incident got here to gentle when a 35-year-old man reported to the police on April 12 that he had been unable to retrieve money after exchanging about HK$1 million value of the digital forex Tether (USDT) on the store. 

Per the criticism, the client was proven stacks of “hell cash” earlier than making the transaction. For readability, hell banknotes are celebratory currencies utilized in conventional Chinese language rituals as choices to ancestors or deities.

Following this report, the HKPF’s know-how crime division arrested three males, aged between 31 and 34, on Wednesday. Through the raid, safety power officers seized 3,000 hell banknotes, a secure, and a note-counting machine from the premises. 

Additional investigations revealed that suspects allegedly introduced wads of HK$500 “hell banknotes,” prompting the sufferer to switch roughly HK$1 million value of USDT (Tether) to their crypto pockets.

Within the aftermath of this switch, the suspects reportedly made numerous excuses, refused handy over the agreed-upon money, and subsequently left the scene. 

Below Hong Kong regulation, people convicted of fraud can withstand 14 years in jail. As well as, an offender discovered responsible of acquiring below pretense could withstand 10 years of imprisonment.

In the meantime, the HKPF has urged residents to conduct transactions by means of licensed and approved cryptocurrency exchanges. They’ve additionally emphasised the significance of rigorously inspecting banknotes for security measures to keep away from falling sufferer to such scams. Furthermore, investigations into the case are ongoing.