Hong Kong Police Bust Crypto Rip-off Ring, 25 Arrested

• 25 women and men have been taken in custody by Hong Kong authorities.
• The group is deemed chargeable for 39 crypto scams circumstances. 
• 23 males and 16 girls, aged between 19 and 72, misplaced virtually $1 million to those scammers.

Hong Kong Police have arrested 25 women and men concerned in a cryptocurrency rip-off and cash laundering operation. Authorities report that digital asset scams signify 7% of all fraud circumstances within the Particular Administrative Area (SAR) of China.

In keeping with a report, the Wong Tai Sin District Crime Division performed an enforcement operation codenamed “Lian Dou” from September 19 to 26. This operation resulted within the arrest of 25 people allegedly concerned in crypto scams and cash laundering, perpetrating 39 scams and defrauding victims of over 7 million yuan (virtually $1 million).

These 39 circumstances concerned 23 males and 16 girls, aged between 19 and 72, together with clerks, college students, and housewives, who had been scammed out of their financial savings.

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Senior Inspector Mak Ning-fung led the investigation, revealing that the group consisted of 18 males and seven girls, aged between 19 and 65, largely unemployed, waiters, or development staff. These arrested included a bunch mastermind, three core members, and 21 puppet account holders, suspected of “acquiring property by deception” and “cash laundering.”

Authorities Seize Digital Gadgets and Chilly Wallets

Hong Kong authorities seized greater than 20 digital units from the group mastermind’s residence, together with two cryptocurrency chilly wallets doubtlessly linked to the case. The group allegedly started its exercise in Might 2023, utilizing puppet accounts to open financial institution accounts and crypto trade accounts concurrently.

The core members of the group had a transparent division of labor. After scamming victims by varied schemes and depositing cash into designated puppet financial institution accounts, some core members instantly used the related trade accounts to conduct P2P transactions, buying crypto and transferring it to their very own wallets.

Pretend Crypto Change Retailers Goal Unsuspecting Buyers

Coin Version beforehand reported that many scammers in Hong Kong have arrange pretend cryptocurrency retailers the place traders go to trade their cash for crypto, solely to have their funds stolen. In a single such case, the sufferer misplaced $125,000.

In keeping with Hong Kong authorities, these retailers promote unimaginable trade charges and provides, luring traders who’re then robbed, and the criminals disappear.