Hong Kong Businessman Loses IDR 6 Billion in Crypto Assets

JAKARTA A 44-year-old businessman in Hong Kong has fallen victim to crypto fraud that cost up to 3.11 million Hong Kong dollars or approximately Rp. 6 billion. The incident revealed the modus operandi of the perpetrators who used counterfeit banknotes to deceive their victims.

This incident took place on Nathan Road, Hong Kong, when the victim was shown three bundles of R$1,000 banknotes. He was then asked to transfer USDT stablecoins worth USD 3.11 million Hong Kong dollars (approximately US$399,000 or Rp. 6,384,000,000) to the digital wallet established by the perpetrators.

According to a report by the South China Morning Post, “Except for the two original banknotes placed above and below each bundle, the remaining money is fake training money.” When the victim asked to check the banknote, two perpetrators posing as office workers refused because they had not received instructions from the manager over the phone. Suspicious, the victim immediately reported the incident to the police.

Hong Kong police managed to arrest three people in connection with the fraud. A 24-year-old man and a 42-year-old woman were arrested at the scene. Another man was also arrested after police found 10,978 counterfeit Hong Kong dollars at Mong Kok’s office, where the fake transaction took place. The three of them were arrested on charges of obtaining property by fraud and possessing counterfeit banknotes.

Crypto fraud in Hong Kong on the rise

Crypto fraud cases in Hong Kong are on an upward trend. In 2024, the police recorded 1,693 “training fees” in three other crypto fraud cases. As one of Asia’s major crypto hubs, Hong Kong faces significant challenges in tackling these fraudulent activities. Local authorities have improved their ability to track money laundering activities involving digital assets.

The Hong Kong Securities and Futures Commission (SFC) has stepped up its surveillance of suspicious crypto entities. This month, the SFC issued warnings against seven crypto trading platforms operating illegally without proper licenses in the region.

Since January 2020, SFC has maintained a warning list with 39 entries. In 2024 alone, 28 crypto exchanges have been included in this list, including Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT and Bstorest.

With fraudulent activities on the rise, Hong Kong continues to strengthen regulation and supervision to protect investors and maintain the integrity of the crypto market. These measures include increasing law enforcement capabilities and strict supervision of crypto trading platforms.

According to a report by Cointelegraph, Hong Kong has managed to build up significant experience in dealing with crypto matters, which allows authorities to be more effective in detecting and tackling money laundering activities. In addition, the authorities are also aggressively educating the public about risks and how to prevent crypto fraud.

This case highlights the importance of education and caution for investors in dealing with crypto investment risks. With the high volatility of the crypto market and the many forms of fraud, investors should always be vigilant and do thorough research before making any transactions.

A report by CryptoSlate shows that despite the many risks, profit opportunities in the crypto market remain attractive to many investors. However, to limit risk, investors are advised to only trade through platforms that are reputable and well-regulated.

Tag: technology as kripto hong kong