Hong Kong police have detained three employees of a currency exchange shop in Tsim Sha Tsui on suspicion of engaging in fraudulent activities related to cryptocurrency transactions. The arrests come after an incident involving a customer who allegedly fell victim to a scam involving counterfeit "hell banknotes."

Arrests and Confiscations

The individuals, aged between 31 and 34, were apprehended by Hong Kong's technology crime division. Authorities seized 3,000 hell banknotes, a safe, and a note-counting machine from the shop in Tsim Sha Tsui. Hell banknotes, typically used in Chinese rituals as offerings, were among the confiscated items.

Fraudulent Transaction

The arrests followed a report from a 35-year-old man who claimed to have sold approximately HK$1 million worth of Tether (USDT) at the shop but was unable to retrieve the cash. Investigation revealed that the suspects presented stacks of counterfeit hell banknotes to the victim and persuaded him to transfer the USDT to a cryptocurrency wallet they provided. However, upon receiving the virtual currency, the suspects failed to fulfill their end of the agreement, leaving the victim empty-handed.

Legal Ramifications

In Hong Kong, fraud carries a maximum penalty of up to 14 years imprisonment, while individuals charged with obtaining property by deception could face a maximum sentence of 10 years.

Growing Concerns

This incident adds to a series of crypto-related scams in Hong Kong. Recent cases include the arrest of three teenagers who unlawfully detained and extorted a 19-year-old victim, and a separate incident where a 46-year-old housewife lost over HK$7 million to fraudsters who approached her through social media.

Authorities' Advice

In light of these incidents, Hong Kong authorities advise residents to exercise caution when conducting transactions, particularly involving cryptocurrency. They urge individuals to use reputable exchange shops and carefully inspect banknotes for security features to avoid falling victim to scams.

As crypto scams continue to pose risks in Hong Kong, authorities emphasize the importance of vigilance and due diligence when engaging in digital asset transactions.