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Hong Kong Cryptocurrency Customer Scammed in Alleged HK$1 Million ‘Hell Money’ Scheme
Hong Kong Police have arrested three workers at a currency exchange shop after a customer was allegedly shown piles of “hell money” before transferring around $1 million worth of cryptocurrency.
The force’s technology crime division arrested three men, aged 31 and 34, on Wednesday on suspicion of obtaining property by deception and confiscated 3,000 hell notes, a safe and a counting machine banknotes in a shop in Tsim Sha Tsui.
Hell notes are a form of ceremonial paper money that is burned as an offering to ancestors or deities in traditional Chinese culture.
Police said they received a complaint from a man, 35, on April 12, claiming he was unable to recover cash after selling about $1 million of the digital currency Tether, or USDT, that day in a shop in Tsim Sha Tsui.
Police confiscated 3,000 hell notes with a face value of 500 Hong Kong dollars. Photo: flyer
An investigation later found that the suspects allegedly showed the victim stacks of hellish banknotes with a face value of HK$500 and persuaded him to transfer approximately HK$1 million in USDT to a cryptocurrency wallet provided by them .
After receiving the virtual currency, the suspects made multiple excuses, refused to hand over the cash as agreed, and suddenly left the scene.
A person convicted of fraud under Hong Kong law is liable to prison for up to 14 years, while someone accused of obtaining property by deception faces up to 10 years behind bars.
Law enforcement agencies urged residents to choose reputable cryptocurrency exchange shops when making transactions and to carefully inspect banknotes for security features.