As a seasoned financial analyst with extensive experience in Hong Kong’s market, I have seen my fair share of scams and fraud schemes. However, the recent incident involving the alleged cryptocurrency scam in Mong Kok, where individuals duped a businessman out of HK$3.11 million by exchanging his cryptocurrency for counterfeit banknotes, is particularly troubling.
Three individuals have been taken into custody by Hong Kong authorities for suspected involvement in defrauding a businessman of around HK$3.11 million (US$399,000) in cryptocurrency.
As a researcher studying financial crimes, I’ve come across cases where scammers have lured victims into exchanging their cryptocurrency holdings for cash at supposedly profitable rates. But upon transferring the funds, the unsuspecting victims have received counterfeit HK$1,000 banknotes in return.
Scammers tricked the victim by placing two authentic banknotes on top of three piles of counterfeit training notes they proposed in exchange for USDT. Simultaneously, they asked the victim to move his HK$3.11 million from his USDT wallet into one managed by the fraudsters before promising compensation.
Bank training materials closely mirror real currency but can be identified by the inclusion of “practice coupon” inscriptions, consisting of three Chinese characters.
The notes bear no watermarks similar to those on authentic currency, increasing the risk of being mistakenly identified as genuine.
As a crypto investor, I’ve come across some shady deals in my time. And let me tell you about one instance where I suspect a scam took place. The story goes that an individual requested to examine the authenticity of certain banknotes. But, unfortunately, the supposed sellers denied this request, claiming they hadn’t gotten the green light from their store manager. In hindsight, it seems highly suspicious to me that they wouldn’t allow such a simple check, raising red flags about the legitimacy of the transaction.
As a crypto investor, I’ve come across various forms of fraud in my journey. One instance that comes to mind was a scam that was actively running in Mong Kok, a bustling marketplace area in Hong Kong, known for its vibrant energy. When authorities finally raided their hideout, they discovered an astounding stash of 10,978 counterfeit banknotes.
Currently, the involved individuals have been taken into custody by authorities on allegations of obtaining property through fraudulent means and holding fake banknotes. If found guilty, these individuals face a possible sentence of 10 years in prison for deception charges, and up to 14 years for manufacturing, circulating, or using counterfeit currency.
Over the past few months, there have been several instances of counterfeit money discoveries in Hong Kong. Last month alone, the authorities confiscated over HK$2.55 million (equivalent to around $326,130 USD) of fake currency.
A large number of these notes can be traced back to only three deceitful cryptocurrency schemes, all of which utilized the same method of exchanging cryptocurrency for cash, and additionally included transactions using USDT.
In addition to training materials, the authorities confiscated counterfeit Chinese “hell banknotes.” These are novelty notes employed in ancient customs for presenting offerings to deceased ancestors or divine beings.
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2024-07-16 11:52