Woman’s $128K Vanishes in Hong Kong Crypto Scam at Fake Shop

In a distressing incident of fraud, a female accountant in Hong Kong fell victim to a cryptocurrency scam orchestrated by three men. The perpetrators managed to deceive her out of HK$1 million ($128,000) worth of cryptocurrency using counterfeit banknotes and a fake “cryptocurrency shop.”

The 29-year-old victim came across an enticing advertisement on Instagram promoting a cryptocurrency trading outlet with attractive exchange rates. Eager to convert her 128,040 Tether ($128,067) into fiat currency, she visited the shop on Sunday.

Upon arrival, an individual posing as an employee handed her a bundle of HK$1,000 banknotes, instructing her to transfer the cryptocurrency to a designated wallet under their control. Unbeknownst to her, the stack of cash contained only two genuine notes at the top and bottom, while the rest were counterfeit training aids for banks.

After completing the transfer, she was asked to wait outside the shop as the “employee” claimed to need to use the restroom. To her dismay, the man never returned, leaving her stranded with the counterfeit banknotes. Suspecting foul play, she contacted the police later that evening.

According to the South China Morning Post (SCMP), police investigating the Hong Kong crypto scam and on Wednesday arrested a 21-year-old student who held the wallet involved and a 46-year-old man who is the registered tenant of the “cryptocurrency shop”. The pair have since been released on bail.

Efforts are underway to apprehend the third co-conspirator, believed to be responsible for the creation of the counterfeit note bundle. Authorities in Tsim Sha Tsui are actively pursuing the individual to bring them to justice.

On 27 May, Hong Kong police launched the Metaverse platform CyberDefender to protect the users but this incident shows that the Users are advised to thoroughly research and verify the credibility of trading platforms before conducting any transactions.