Hong Kong Crackdown on Cryptocurrency Crime: 14-Year-Old Uses Counterfeit Money to Scam Cryptocurrency, Nets $1.4 Million

According to a report from South China Morning Post, the Hong Kong police arrested a group of four individuals yesterday, who are suspected of using counterfeit banknotes to deceive cryptocurrency holders and fraudulently obtain cryptocurrency assets, including a 14-year-old teenager. The illicit profits amounted to HK$11 million, approximately US$1.4 million.

Teenagers Scam Millions in Cryptocurrency in Past Year

Reports indicate that the Hong Kong Commercial Crime Bureau has arrested a group of four criminal accomplices aged between 14 and 39, suspected of holding and using over 5,000 counterfeit banknotes to defraud cryptocurrency holders, with a total amount involved of HK$11 million, approximately $1.4 million USD.

It is reported that the four suspects had clear division of labor, with two masterminds responsible for purchasing counterfeit banknotes and operating a fake cryptocurrency exchange, while the other two were in charge of transporting the counterfeit banknotes between warehouses and exchanges:

The main suspect claimed to be a well-known cryptocurrency investor, offering a price higher than the market rate to entice victims to sell their cryptocurrencies, then showing the counterfeit banknotes to gain trust, and finally completing the transaction online to transfer the ill-gotten assets.

Inspector Lo Yuen-shan stated at a press conference on Sunday that this case brings the total number of arrests related to such cryptocurrency fraud cases since last October to 14:

The suspects even prohibited the victims from unfolding the stacked HK$1,000 banknotes on the spot, as only the top and bottom ones were genuine.

Police Warning: Increase in Cryptocurrency Scams

In response, Lo Yuen-shan urged young people not to engage in crime for quick money, especially during the summer vacation, expressing concern:

The above-mentioned scam method has been quite common in recent cases, with these four individuals and other suspects deceiving 12 victims since October last year, involving tens of millions of Hong Kong dollars.

It was also emphasized, "The public should regularly check the holographic patterns on banknotes to ensure authenticity."

It is reported that the maximum penalty for manufacturing, circulating, or passing counterfeit banknotes in Hong Kong is 14 years of imprisonment.

Hong Kong Actively Implements Regulation and Explores Cryptographic Technology

In recent years, Hong Kong has actively embraced cryptocurrencies, evident in both regulatory and technological aspects, including launching spot Ethereum and Bitcoin ETFs, continuing to crack down on unregistered exchanges, and closely monitoring unlicensed investment advice within Telegram chat groups.

This month, the Hong Kong Monetary Authority (HKMA) has collaborated with multiple financial and startup institutions to participate in a "sandbox" program related to stablecoin issuance.

HKMA announces participants of stablecoin issuer "sandbox": JD Coin Chain/Yuan Coin Innovation/Standard Chartered/Animoca Brands/Hong Kong Telecom