Hong Kong authorities have dismantled a notorious group accused of running a HK$360 million ($46.35 million) cryptocurrency investment scheme from an office in the Hung Hom district.

A total of 27 suspects, aged between 21 and 34, were arrested under suspicions of conspiracy to defraud and weapons possession during a police raid last week. Many detainees are believed to be graduates in digital media from local universities and are potentially connected to local triad groups.

In 2023, global losses from cryptocurrency investment fraud exceeded $3.96 billion, a significant increase from $2.57 billion reported the previous year. In Hong Kong, scam incidents accounted for 43.9% of all reported crimes in the first half of this year.

While similar operations have been identified in regions like Southeast Asia, India, Dubai, and most recently Sri Lanka, this type of organized scam is uncommon in Hong Kong.

Yiu Wing-kin, superintendent of the New Territories South Crime Headquarters, stated, "It is rare to find a cross-border fraud center that is quite large, well-organized, has a careful division of labor, and operates physically in Hong Kong."
(Translation: "Es raro encontrar un centro de fraude transfronterizo que sea bastante grande, bien organizado, y que opere físicamente en Hong Kong.")

Although not prevalent, this arrest contributes to the ongoing issue of scam operations infiltrating the area, as highlighted by a recent police bust of a phone scam network that took place in August, involving both local residents and foreigners.