Key Points:
- Hong Kong police arrest 27 suspects involved in a $46.3 million cryptocurrency scam.
- The scam operated via online romance fraud, targeting victims in Hong Kong and other countries.
- Police seized cash and luxury items, including watches worth over HK$2 million ($257,400).
- Authorities continue to investigate as crypto-related scams rise globally.
Massive Romance Scam Busted in Hong Kong
Hong Kong authorities have arrested 27 individuals linked to a large-scale cryptocurrency fraud scheme that scammed victims out of HK$360 million ($46.3 million). The arrests took place during “Operation Secret Word,” a special effort launched by the Hong Kong police earlier this month to dismantle the scam network.
According to reports from local media outlet HK01, the fraudulent operation had been in effect for about a year, running an online romance scam that convinced victims to invest in cryptocurrency. More than 100 police officers were involved in the investigation, leading to significant seizures of cash and luxury goods, including a red Richard Mille watch valued at HK$2 million ($257,400) and a gold Rolex worth HK$300,000 ($38,600).
Scam Targeted Victims Across Asia
The fraud was not limited to Hong Kong residents, as victims were found in other countries such as India, Singapore, and Malaysia. This cross-border operation involved complex tactics that made tracing the funds more difficult for authorities. According to Iu Wing Kan, superintendent of the Hong Kong police, the criminals deliberately avoided traditional banking systems, opting instead to conduct transactions using cryptocurrency.
Hong Kong’s police force remains committed to uncovering more details about the fraud ring as the investigation continues. The arrests are part of a growing effort to combat the rising threat of cryptocurrency-related scams, which have become a major concern across the globe.
Global Surge in Cryptocurrency Scams
The arrests in Hong Kong come against the backdrop of a global increase in crypto scams. In 2023, the U.S. Federal Bureau of Investigation (FBI) reported a 45% rise in losses linked to cryptocurrency fraud, further highlighting the expanding scale of such crimes. Experts estimate that victims of these types of schemes have lost approximately $75 billion from 2020 to early 2024.
The Hong Kong operation exposed one of the more prevalent types of crypto fraud, commonly referred to as “pig butchering” or romance scams. In these scams, fraudsters engage in romantic conversations with their victims, eventually persuading them to invest in fake cryptocurrency platforms. When the victims attempt to withdraw their profits, they are met with demands for additional payments under the guise of taxes, fees, or law enforcement holds on the assets. In some cases, the scammers resort to blackmail by using compromising romantic messages shared via platforms like WhatsApp.
As cryptocurrency continues to grow in popularity, the number of scams involving digital assets is expected to rise. Last month, the U.S. Commodity Futures Trading Commission (CFTC) announced a collaborative effort with the Securities and Exchange Commission (SEC) and other federal and state regulators to combat the increasing threat of crypto fraud.
This case highlights the ongoing challenges faced by law enforcement in the fight against sophisticated fraud networks that exploit the unregulated and anonymous nature of cryptocurrency transactions. Further details on the suspects and the extent of the fraud are expected as the investigation progresses.
