In an unexpected twist, three individuals have been arrested in Hong Kong who had defrauded a customer previously in an audacious cryptocurrency scheme. The event that has been brought to light after the victim filed the complaint has illuminated the dangers that are likely within such unregulated cryptocurrency transactions.
The scam unfolds
Hong Kong Police report that on April 12, a 35-year-old man went to add cash at an ATM but could not access the cash that he had exchanged for about HK$1 million in Tether (USDT) currency at crypto exchange shop physical shop in Tsim Sha Tsui area. According to the claimant, the employees show off “hell money,” the celebratory dollars used in traditional Chinese ceremonies for the deceased or divinity, before the deal is settled.
After filing the complaint, the police force of Hong Kong’s crime and technology branch promptly initiated their work by arresting three men, all over 31 years old. The operating equipment, including hell banknotes, ATM, and note-counting machines, were confiscated by police during the raid, and at this point, the value of the seized currency has yet to be ascertained. The probes revealed that the suspects used a stack of $500 notes known as ‘hell banknote’, and the victim transferred about US$1 million of USDT (Tether) to a crypto wallet.
Alleged fraud and legal implications
Being shown in the accusation, after a victim has transferred a digital currency, the suspects gave various excuses, refused to give cash that the parties had agreed upon before finishing the meeting. According to the law of Hong Kong, those who have engaged in the world of fraud will face with up to 14 years of imprisonment, while persons who have indulged themselves in the act of deceit will face a maximum penalty of 10 year’s imprisonment.
After this incidence, the HKPF is calling citizens to have a heightened mindfulness when conducting transactions with licensed and official cryptocurrency exchanges. In addition, they stress the necessity of security checks for the quality of the notes they are dealing with in order to not gamble. Rather, they must not fall a victim to such cons. Prosecution into the issues relating to this matter continues, and authorities ought to enforce punitive measures to the alleged fraudsters.
By taking required safety measures, doing thorough background checks, and using reliable and authorized platforms, people can lower the risks related to cryptocurrency trades and thus together contribute to the responsible growth of this emerging fintech world.
