Foreigner defrauded of $72m in major scam among 45 cases busted by police

A foreigner lost over HK$70 million in a cryptocurrency scam, police said on Thursday, after arresting a total of 54 people in a crackdown on fraud and money laundering.

In a press briefing on Thursday, police said they have busted 45 cases related to scams of online investment, jobs, purchases and others, involving a total of HK$194 million in victim money.

Senior Inspector Kwan Chi-chung from the Yau Tsim district technology and financial crime squad said in the biggest case, a foreigner was swindled out of HK$72 million after being lured into investing in cryptocurrency.

Two mainland women in their 30s were later arrested and brought before the Kowloon City Magistrates’ Courts over charges of money laundering last week.

Police said among the 54 arrestees, aged between 19 and 66, most of them are holders of “stooge accounts.” Criminals often gain control of these accounts by luring others into lending or selling their bank accounts, according to authorities.

“In an effort to strengthen crackdown on money laundering, police will consult with the Justice Department and seek a harsher penalty against the stooge account holder,” Kwan said.

The officer referenced a February money laundering case where the District Court increased a 24-year-old man's sentence by 25 percent -- adding six months -- to a total of two and a half years.

Kwan warned citizens against lending or selling their bank accounts to criminals, as they may face a maximum fine of HK$5 million or 14 years’ imprisonment.

(Jamie Liu)