Three Suspects Arrested in Hong Kong Over HK$1 Million USDT Fraud

The Hong Kong police have arrested three suspects over defrauding a customer of HK$1 million worth of USDT. The case which was reported over a month ago has now seen the perpetrators detained according to a recent report. Locals have been cautioned about using only licensed crypto exchange shops to avoid similar stories in the future.

Three Crypto Exchange Shop Workers Detained

In a recent development, the Hong Kong police apprehended three cryptocurrency exchange shop workers on May 14 after swindling a local customer of his money, up to the tune of HK$1 million worth of the stablecoin USDT. According to a report by Sing Tao Daily, a 35-year-old man previously reported to the authorities on April 14 that he was unable to collect cash after selling the cryptocurrency to the suspects at a shop in Tsim Sha Tsui.

Following this, the Cyber Security and Technology Crime Bureau (CSTCB) of the Yau Tsim District launched an investigation into the matter, analyzing every piece of information presented by the victim. Consequently, on May 13, the three suspects between the ages of 31 and 34 were arrested for “obtaining property by deception.”

Furthermore, the police recovered about 3,000 counterfeit cash, a counting machine, and a money clip at the shop. After more research, it was discovered that the detained guys allegedly presented the victim with three stacks of fake HK$500 banknotes and gave him instructions to move HK$1 million worth of Tether to a cryptocurrency wallet they were providing. However, after getting the virtual money, the suspects avoided giving up the money and fled the area.

Cryptocurrency scams are becoming a growing phenomenon in the crypto landscape. According to a report by Chainalysis, over $24 billion worth of cryptocurrencies were stolen in 2023 by sending to “illicit addresses.” This situation calls for global attention as participants are often reminded that the safety of their digital assets is their responsibility.

Ultimately, the Hong Kong police advise the public to proceed with prudence when carrying out cryptocurrency transactions. They suggest that people pick reliable and licensed exchanges and closely examine banknotes for security features.