Hong Kong police have arrested four individuals, including a 14-year-old, for their role in a scam using counterfeit banknotes to defraud cryptocurrency owners. This operation has revealed substantial losses of up to HK$11 million (US$1.4 million) since October 2023.
Chief Inspector Lo Yuen-shan from the Commercial Crime Bureau shared that the latest arrests, made on July 26, are part of a broader initiative that has seen 14 individuals apprehended since October last year.
The suspects, ranging in age from 14 to 39, face charges including conspiracy to defraud and possession of counterfeit banknotes. The police investigation uncovered the structured nature of the syndicate, where members were assigned specific roles. Two key suspects were identified as the masterminds who obtained counterfeit banknotes from a storage facility in Mong Kok.
According to local reports, these suspects disguised a nearby location as a legitimate business to lure victims by posing as reputable cryptocurrency investors.
Victims were shown stacks of counterfeit HK$1,000 (US$128) banknotes, with only the top and bottom notes being genuine, deceiving them into believing the entire stack was real. Transactions were conducted online to prevent victims from inspecting the banknotes thoroughly.
Once the cryptocurrency was transferred, the scammers moved the assets out of the account and refused to pay, leaving victims with nothing.
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