Investors in Hong Kong Lost $50M From Crypto Scams This Year

Investors in Hong Kong lost $50 million from crypto scams this year. Scams involving cryptocurrencies reportedly increased in Hong Kong for the first half of 2022 by 105% compared to the same period in 2021.

According to reports, one of the most frequent cybercrimes in Hong Kong during the first half of 2022 used digital assets in 25% of cryptocurrency frauds.

The alarming frequency of these fraudulent schemes may be attributed to Hong Kong people’s rising interest in cryptocurrencies. The state was named the most crypto-ready nation in the world by a recent study.

In H1 2021, there were 105 percent fewer cryptocurrency scams

Between the beginning of January and the end of June of this year, there were 10,613 cyberattacks in Hong Kong, according to a South China Morning Post report. 798 of the fraudulent schemes involved cryptocurrencies, which represents a 105 percent increase over the same period in 2021.

In contrast to the $21 million stolen in H1, 2021, wrongdoers siphoned off HK $387.9 million (around $50 million) from Hong Kong-based digital asset enterprises and individuals.

Fan, a 30-year-old manager of a currency exchange shop in the area, was one of these victims. A few months ago, she got a WhatsApp message from a mysterious sender posing as the CEO of a platform for digital assets. She was tricked into spending about $280,000 on Tether by the criminal (USDT).

“The first four transactions to exchange [cryptocurrency] Tether went smoothly. The victim received HK$2.7 million, which included payment to her for the exchange service she provided to the scammer. By that point, the scammer gained the victim’s trust,” law enforcement agents noted.

However, soon after, the offender gave Fan the recommendation to transfer the accrued profits to a questionable bitcoin wallet. Naturally, she lost access to her assets during the time that the con artist stopped contacting her.

The Hong Kong police also found that scams involving digital assets were among the top three crimes in the nation during the first quarter of 2022. Because of all these factors, investors in Hong Kong lost $50 million from crypto scams this year.

Hong Kong Aspires to the Top of the Crypto Ladder

The exploding appetite for digital assets that Hong Kong citizens have recently displayed may be the cause of the sudden rise in bitcoin scams in the city. China’s special administrative area is the world’s most crypto-ready nation, according to a survey done last month.

The top spot came about as a consequence of a combination of various elements, including the government’s supportive stance toward the sector, the number of bitcoin ATMs, and the general level of interest in it.

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