Hong Kong police arrested three individuals connected to a fraud syndicate that scammed at least 10 residents out of HK$5.1 million through fake virtual investment talk tickets. The victims were tricked into bidding for fake tickets to an investment seminar with promises of high returns and no risk, which they could resell for a profit. The scam involved a sham trading platform controlled by the syndicate, and victims were persuaded to deposit money with the promise of a monthly return of 7% interest. The syndicate, which started operating in November 2022, faces charges of conspiracy to defraud, which could result in a prison sentence of up to 14 years.
The scammers invited targets to an investment seminar at a grade-A office in Kowloon Bay and convinced them to bid on admission tickets for an investment talk show. The bidding started at 100 Tether coins (HK$780) per ticket, with the promise of selling them the next day at a markup of 300 Tether coins. As the bidding price increased, victims were told they would eventually be able to sell their tickets at an inflated price of 15,000 Tether coins. However, the money supposedly won by victims actually belonged to other victims, and the trading platform ceased operations when new targets could no longer be found, resulting in substantial losses for those involved.
The Hong Kong Securities and Futures Commission (SFC) and the Hong Kong Police Force have joined forces to combat the rising number of fraud cases in the cryptocurrency space in Hong Kong. The partnership aims to monitor unlawful activities related to virtual asset trading platforms (VATPs) within Hong Kong’s jurisdiction. The collaboration was prompted by the scrutiny faced by the JPEX exchange, the largest fraud case in Hong Kong, which allegedly did not have the necessary license from the SFC and resulted in losses of approximately $166 million. The SFC has released a list of licensed, unlicensed, and suspect VATPs to prevent individuals from falling victim to scams involving bogus crypto platforms.
Inspector Tam Ho-yin of the Sau Mau Ping district crime squad explained that victims of the investment scam were not able to withdraw their money as scammers made excuses and demanded excessive administrative fees. Some victims who made profits introduced their family and friends to the scheme, further perpetuating the scam. The police have urged other potential victims to come forward and report any suspicious activities. The syndicate involved in the scam faces charges of conspiracy to defraud, and police have seized cash and mobile phones as evidence.
In response to the significant increase in fraud cases in Hong Kong, the SFC and the Police Force have taken steps to address the issue and prevent further financial losses. The collaboration aims to monitor and crack down on illegal activities associated with virtual asset trading platforms to protect investors from falling victim to scams. The initiative was driven by the scrutiny faced by the JPEX exchange, which allegedly operated without the necessary license and resulted in substantial losses for over 2,000 investors. By releasing a list of licensed and unlicensed VATPs, the SFC aims to provide transparency and prevent individuals from engaging with fraudulent crypto platforms.
The fraud syndicate involved in the fake virtual investment seminar ticket scam has been charged with conspiracy to defraud, which carries a potential prison sentence of up to 14 years. Victims of the scam were deceived into bidding for fake tickets with promises of high returns and were persuaded to deposit money into a bogus trading platform. The victims were unable to withdraw their funds as scammers made excuses and demanded excessive administrative fees. Police have seized cash and mobile phones as evidence, and they are encouraging other potential victims to come forward and report any suspicious activities to prevent further financial losses in Hong Kong’s cryptocurrency space.
