Authorities in Hong Kong have arrested four people for allegedly defrauding victims out of cryptocurrency worth approximately $1.4 million using counterfeit cash.
According to a South China Morning Post report, Hong Kong police have apprehended four people aged between 14 and 39 suspected of conspiring to defraud while possessing 5,000 counterfeit Hong Kong dollar (HK$) banknotes.
The police say two suspects are masterminds, allegedly responsible for hunting victims on the internet, procuring counterfeit banknotes and securing the locations for the group’s fake cryptocurrency exchange business.
Meanwhile, the two other suspects were allegedly tasked to transport counterfeit banknotes from a storage facility.
The police say the masterminds allegedly impersonated a famous cryptocurrency investor to lure victims while offering to buy crypto assets at above-market rates.
The victims were allegedly invited to the fake cryptocurrency exchange shops where the suspects showed them piles of banknotes as a way of proving they had the means to buy their digital assets.
Says Chief Inspector Lo Yuen-shan of the Commercial Crime Bureau,
“The suspects did not allow victims to untie the stack of HK$1,000 banknotes because only the top and the bottom ones were authentic.”
Once the suspects had won over the victims, they allegedly convinced them to transfer the crypto assets.
Upon receiving the digital assets, the police say the suspects transferred the crypto to other accounts and declined to pay the victims.
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