In an unexpected turn of events, authorities in Hong Kong have apprehended three individuals who previously scammed a customer in a daring cryptocurrency scheme. The revelation of this incident, which came to light after the victim filed a complaint, highlights the potential dangers associated with unregulated cryptocurrency transactions.
According to the Hong Kong Police, the scam unfolded on April 12th when a 35-year-old man attempted to withdraw cash from an ATM but was unable to access the HK$1 million worth of Tether (USDT) currency he had exchanged at a physical crypto exchange shop in the Tsim Sha Tsui area. The victim claims that the employees showcased “hell money,” a form of ceremonial currency used in traditional Chinese rituals for the deceased or divine, before finalizing the deal.
Upon receiving the complaint, the Hong Kong Police’s crime and technology branch swiftly took action by arresting three men, all aged over 31. During the raid, the police seized various operating equipment, including hell banknotes, an ATM, and note-counting machines. The exact value of the confiscated currency has yet to be determined. Investigation into the matter revealed that the suspects used stacks of $500 notes referred to as “hell banknotes,” and the victim transferred approximately US$1 million worth of USDT (Tether) to a crypto wallet.
The alleged fraud and its legal implications have come to light, with the victim stating that after transferring the digital currency, the suspects provided various excuses and ultimately refused to provide the agreed-upon cash. In Hong Kong, engaging in fraudulent activities can lead to up to 14 years of imprisonment, while those involved in deceitful acts may face a maximum penalty of 10 years’ imprisonment.
Following this incident, the Hong Kong Police Force is urging citizens to exercise caution when conducting transactions with licensed and official cryptocurrency exchanges. They emphasize the importance of conducting security checks to verify the authenticity of the currency being used in order to avoid falling victim to such scams. Investigations into this matter are ongoing, and authorities are expected to take punitive measures against the alleged fraudsters.
By taking necessary precautions, conducting thorough background checks, and utilizing reputable and authorized platforms, individuals can mitigate the risks associated with cryptocurrency trades, thereby contributing to the responsible growth of this emerging fintech industry.
