Foreigner loses $72m in crypto scam, police say

Jamie Liu

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

In a press briefing, 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.

In an operation running from March 10 to 19, authorities arrested 35 men and 19 women, aged 19 to 66, including construction workers, truck drivers, office secretaries, housewives and unemployed individuals.

The operation also saw the force successfully stop scammers from transferring away over HK$9.4 million.

Kwan vowed that police will continue to track down the remaining funds. He also said most of those arrested 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 the 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.

The man was accused of selling two of his accounts to criminals, enabling them to handle HK$5.5 million funds of unknown origin, which included money belonging to three victims in an investment scam.

Kwan warned people 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@singtaonewscorp.com