The city of Hong Kong has witnessed a significant surge in crypto crimes, with the rate reportedly tripling over the past three years.
Official data reveals a substantial increase in documented crypto cases, reaching a staggering amount in 2023.
Key Statistics of Crypto Crime in Hong Kong
- Crypto Crime Surge: The rate of crypto crime in HK has tripled, with reported cases involving nearly 4.4 billion yuan (approximately $611 million) in 2023.
- Recorded Cases: Hong Kong’s Securities and Futures Commission (SFC) documented 1,397 cases in 2021, 2,336 in 2022, and a significant spike to 3,415 cases in 2023.
The SFC has actively responded by listing 14 crypto exchanges on its ‘List of Suspected Virtual Asset Trading Platforms’ as of February 14.
Online Investment Fraud
- Alarming Increase: The South China Morning Post (SCMP) reported a staggering 170% increase in online investment fraud cases, with 5,105 cases handled by the police in the previous year.
- Financial Manager’s Loss: A financial manager in HK fell victim to a scam trading site, losing an alarming amount of HK$17.8 million (US$2,173,500) through bogus crypto and gold investments.
- Deceptive Tactics: The SCMP highlighted a case where a 57-year-old woman, working as a financial manager, lost a substantial sum after being lured with false profits.
- Scam Trading Site: The victim was enticed to make further trades on a scam trading site, with promises of profits that she could never withdraw.
- Crypto Wallet Manipulation: The scammer coerced the victim into sending money to various crypto wallets, falsely claiming it was for financing a legal case.
Government Warning
- Financial Services Minister’s Concerns: Hong Kong’s Financial Services and Treasury Minister, Hui Ching-yu, expressed concerns over the surge in crypto crimes, emphasizing the need for stringent measures.
The alarming rise in crypto-related crimes in HK necessitates urgent attention and robust measures from regulatory authorities. The significant increase in both reported cases and financial losses underlines the growing challenges posed by fraudulent activities in the crypto space.
The government’s response, including listing suspected trading platforms, indicates a recognition of the severity of the issue and the importance of proactive measures to safeguard investors and maintain the integrity of the financial system.