Hong Kong Company Director Falls Victim to Multi-Million Dollar Cryptocurrency Scam

In the latest wave of cryptocurrency scams, a 47-year-old Hong Kong company director has been swindled out of more than HK$16 million (US$2 million). The businessman, who wishes to remain anonymous, fell prey to a fraudulent investment expert he befriended on Facebook and subsequently communicated with on WhatsApp.

According to the SCMP, the scammer convinced the victim to set up an account on a fake cryptocurrency investment app. Between April 19 and May 13, the director transferred a staggering HK$16.23 million into 16 different bank accounts across 39 transactions, as instructed by the con artist.

The fraud became apparent to the businessman when he was unable to withdraw the promised profits and found himself unable to contact the bogus expert. Additionally, his access to the investment account was blocked, leaving him no choice but to seek help from the authorities.

As of now, no arrests have been made in connection with the case. The police are actively searching for the individuals responsible for holding the bank accounts involved. The incident has been classified as “obtaining property by deception,” an offense that carries a maximum penalty of 10 years in jail under the Theft Ordinance.

The number of cryptocurrency-related scams reported in Hong Kong last year reached 2,336, representing a 67 percent surge from the 1,397 incidents reported in 2021. The total funds involved in these cases amounted to approximately HK$1.7 billion (US$127 million), reflecting a substantial 106 percent increase compared to the previous year.