Hong Kong police have broken up a major $46.3 million cryptocurrency scam, leading to the arrest of 27 suspects in an operation code-named “Secret Word.” The suspects, aged between 21 and 34, utilized deepfake technology to impersonate attractive women and entice victims into fraudulent cryptocurrency investments. Some of those arrested were graduates in digital media, while others were suspected to have connections to the notorious Triads.
During a significant raid on the syndicate’s headquarters in Hung Hom, over 100 police officers confiscated 100 mobile phones, nearly $26,000 in cash, and luxury items, including a red Richard Mille watch valued at $257,400 and a gold Rolex worth $38,600. The gang targeted not only Hong Kong residents but also victims from India, Singapore, and Malaysia, persuading them to conduct transactions in cryptocurrency, which made the money harder to trace.
Senior police officer Iu Wing Kan explained that this type of scam, often associated with Chinese gangs in Southeast Asia, is uncommon in Hong Kong. “It is very rare to find a large-scale, well-organized cross-border fraud syndicate with a clear division of labor operating in Hong Kong,” noted Yiu Wing-kin, head of Southern New Territories crime division.
This scam is part of a broader trend of increasing cryptocurrency fraud. Globally, crypto scams are on the rise, with the FBI reporting a 45% increase in losses in 2023. In Hong Kong, scams and frauds accounted for nearly 44% of all reported crimes in the first half of this year. This bust comes shortly after the takedown of a $192 million cryptocurrency money-laundering ring in August, indicating a worrying surge in such operations in the city.
The police continue to urge the public to be vigilant and cautious when engaging in online transactions.
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