Hong Kong police bust $46 million romance fraud scheme involving crypto

Hong Kong authorities have busted a HK$360 million ($46.3 million) fraud scheme involving cryptocurrency and arrested 27 suspects.

HK01, a local news outlet, reported on Tuesday that the Hong Kong police launched a special operation, dubbed “Secret Word,” earlier this month and arrested 27 individuals for allegedly orchestrating online romance scams for about one year and luring victims into investing in cryptocurrency, ultimately swindling them out of their money. 

The police deployed over 100 agents to investigate the case, arrested 27 individuals, and seized luxury watches and over HK$200,000 ($25,742) in cash during an on-site raid in Hong Kong, according to the report. One of the seized watches, a red Richard Mille, is reportedly valued at HK$2 million ($257,400), and another seized item, a gold Rolex, is worth approximately HK$300,000 ($38,600).

Iu Wing Kan, a superintendent of police, said in a press briefing that the fraud syndicate was highly secretive and requested victims to make transactions with cryptocurrencies, avoiding any involvement with bank accounts. This made it more difficult for the police to trace the criminal proceeds, the officer said. 

The police added that the victims included not only Hong Kong residents but also individuals from India, Singapore and Malaysia.

Crypto-related scams appear to be on the rise globally. For example, the U.S. Federal Bureau of Investigations recorded a 45% surge in losses tied to crypto in 2023 compared to the previous year.