A $46 million cryptocurrency operation was held in Hong Kong, which is rapidly becoming a cryptocurrency center by accepting spot Bitcoin and Ethereum ETFs.
Hong Kong police arrested 27 suspects in a special operation called “Secret Word” and seized 200,000 HK dollars ($25,742) in cash and luxury watches, local news agency HK01 reported.
This scam ring allegedly convinced victims to invest in cryptocurrencies, ultimately defrauding them of at least HK$360 million (US$46.3 million).
Among the luxury watches seized was a red Richard Mille watch worth HK$2 million ($257,400); another seized watch, a gold Rolex watch, was valued at around HK$300,000 ($38,600).
Authorities said in a statement that the fraud ring defrauded victims through fake cryptocurrency investment platforms, and that they collaborated with overseas fraud operations and computer experts to design the fake platforms.
“The fraud gang operated very secretively. They asked victims to transact cryptocurrencies and avoid any contact with bank accounts. This made it even more difficult for police to trace the proceeds of the crime. However, they were eventually caught after failing to escape,” police chief Iu Wing Kan said in a press release.
Police recently stated that the victims included not only Hong Kong citizens but also citizens of India, Singapore and Malaysia.
*This is not investment advice.