The Hong Kong cryptocurrency fraud investigation resulted in 458 arrests for $15 million in money laundering and financial offences.
In connection with cryptocurrency fraud, Hong Kong police recently made 458 arrests, including 314 cases of money laundering. Through cash withdrawals and cryptocurrency transactions, almost $15 million was laundered.
A variety of financial crimes, such as internet buying, fake job searches, and other illegal activities, were committed by those who were held as victims.
Arrests for cryptocurrency scams result from a Hong Kong police operation
As was foreseen above, the Hong Kong police have made 458 arrests in connection with 314 counts of money laundering totaling about $60 million.
A claimed $15 million of this total was allegedly laundered through cash withdrawals and cryptocurrency transactions.
A new report claims that people who were imprisoned as victims had been involved in a range of financial crimes, including telephone fraud, job search scams, fraudulent investments, online dating fraud, and online shopping fraud.
Hong Kong law enforcement officials in particular found instances when money laundering groups persuaded some residents to turn over their bank accounts in exchange for sums ranging from $40 to $200.
The proceeds of several scams were later laundered through the use of these accounts.
The inquiry determined that between October of last year and June of this year, the criminal organization moved up to $15 million through cash withdrawals and cryptocurrency exchanges.
The identification of a fake account run by criminal organization members is among the other findings reported by Hong Kong police.
Online fraud and money laundering: information on the operation and arrests in Hong Kong
It was also discovered that between January of last year and February of this year, this account received more than $27 million in lucrative winnings from unlawful betting.
One of the accounts was used to receive money from a scam involving online shopping that had 40 victims. There were 330 men and 128 women who were arrested, with ages ranging from 15 to 82.
Police reported that several of those arrested had fallen prey to online dating or employment frauds. Victims claimed they supplied personal information carelessly because they didn’t trust people they met online.
It was discovered that some of the arrested people were allegedly seduced by members of the criminal gang by making cash refund promises.
These people were duped into snapping selfies with their phones, giving copies of their identity documents, and working together to covertly open virtual bank accounts in order to aid money laundering.
Investigation into Binance’s allegations and cryptocurrencies
Binance has received attention recently for a number of reasons. The exchange has gained attention due to the temporary restriction of EUR transactions through SEPA as well as claims of market manipulation and sanctions violations.
In response, Binance declared that SEPA deposit and withdrawal services will continue to be offered through September 25. However, there would be a greater emphasis on regulatory compliance, and some users would be required to provide more personal information.
Additionally, the exchange was said to have conducted business with sanctioned firms in Russia, raising questions about its compliance. As a result, Binance no longer supports transactions with some Russian ruble banks that have been sanctioned.
This week, the crypto scene was characterized by a number of enforcement actions in addition to a significant wave of frauds. One of the targets of such attacks was the decentralized platform Friend.tech, which has drawn the attention of cybercriminals due to its rising popularity.
Some reports dated August 21 revealed a phishing scam with people impersonating Friend.tech on X. On-chain monitoring system AegisWeb3 issued the caution and urged users to exercise extreme caution.
The @friendtech_web3 bogus profile, which allegedly started an airdrop distribution scheme for the Friend token and lured visitors to a deceptive website, was the subject of AegisWeb3’s warning.
Additionally, the founder of DeFiLlama disclosed this week that a fresh round of cryptocurrency fraud has been using Google Ads as a conduit.
In this growing scam, hackers utilize Google to purchase ad space on trustworthy cryptocurrency websites, and then they employ URL injection to divert consumers to phishing websites once they interact with the ads.
