Hong Kong Police Bust $46M Romance Crypto Scam Operation

Authorities in Hong Kong have dismantled a HK$360 million ($46.3 million) cryptocurrency-based romantic fraud operation in a significant effort to combat fraudulent activities.

This operation, which lasted for over a year, allegedly deceived individuals into investing in cryptocurrencies while posing as online love interests.

Overview of the Scheme and the Seizure

Dubbed “Secret Word,” the operation led to the arrest of 27 suspects who are believed to have orchestrated the scam, targeting unsuspecting victims from Hong Kong and multiple countries, including India, Singapore, and Malaysia.

The Hong Kong police mobilized more than 100 officers to conduct an investigation and execute a raid, confiscating over HK$200,000 ($25,742) in cash, luxury timepieces, and various high-value items.

Among the seized assets was a red Richard Mille watch valued at HK$2 million ($257,400) and a gold Rolex estimated at about HK$300,000 ($38,600).

The sophisticated scam operated for roughly a year, mainly enticing victims through online romance scams. Individuals were convinced they were involved in authentic romantic relationships with those who urged them to invest in cryptocurrency schemes.

Instead of receiving returns, victims lost their investments. Leveraging digital assets allowed the fraudsters to remain under the radar, taking advantage of the anonymity of cryptocurrency transactions.

Authorities reported that victims hailed from diverse backgrounds, including some from Hong Kong and others from various Southeast Asian nations.

The international aspect further complicated the investigation, as the fraudsters operated across borders while exploiting the digital characteristics of cryptocurrencies.

Superintendent Iu Wing Kan emphasized that the syndicate successfully navigated conventional financial systems, creating challenges for law enforcement in tracing the flow of funds.

Execution of the Bust

According to another Superintendent, Yao Yongqin, the successful bust followed the “police receiving information regarding the fraud group involved in this case back in August.”

Yongqin noted that after two months of investigation, the police pinpointed the location of the scam operation and identified its members. The police “conducted their operation on the 9th of this month,” Yongqin disclosed.

Moreover, Hong Kong authorities have reiterated the necessity for caution when engaging in cryptocurrency investments, especially in online relationships or schemes that seem overly enticing. One official, Chen Yongjun, stated:

Prior to investing, it’s crucial to perform multiple verifications, such as consulting the website of the Securities Regulatory Commission. Ensure that the virtual asset trading platform is licensed or has been reviewed by the China Securities Regulatory Commission and included in the “List of Unlicensed Companies and Suspicious Websites.”