Scamming by fake crypto investment platforms resurfaces in Hong Kong. A man in his seventies, after coming into contact with a so-called "crypto investment expert" claiming to be from Singapore on WhatsApp, was led to set up wallets, purchase USDT and ETH, and transfer his assets to the designated addresses, ultimately suffering losses of over 13 million Hong Kong dollars.

False App shows profits

According to the police, the victim downloaded an investment app as instructed and transferred the purchased crypto assets as “principal” into multiple designated wallets. After the transfers were completed, the app continuously displayed account profits, which made the victim less cautious and led them to continue adding more funds.

It was not until the victim attempted to withdraw funds that the platform refused to process the request on various pretexts. After multiple unsuccessful applications, he realized that the so-called investment platform did not exist, and the related assets had already been transferred away.

In recent times, there have been over 40 similar cases in Hong Kong.

The police stated that this case is one of more than 40 investment scams reported recently, with a total loss exceeding 50 million Hong Kong dollars. A common tactic in such cases is to first contact the victims through social media platforms, and then induce them to download fake applications under the guise of "expert guidance" or high-return opportunities.

Earlier this year, a similar case also occurred in Hong Kong. A 66-year-old retired man lost a total of HK$6.6 million in three crypto scams. The scammers approached him under the guise of investment advisors and asked him to transfer money as instructed.

USDT frequently appears in scams.

Several cases previously investigated by the Hong Kong police have shown that fraud platforms typically display false balances and yields on their websites to create the illusion that investments are generating profits. In some cases, victims were even able to withdraw a small amount of money initially, which further convinced them of the legitimacy of the platforms.

• In recent times, over 40 cases have resulted in losses exceeding 50 million Hong Kong dollars each.
• Fun Coffee There have been 255 reports related to this.
• The case involves losses of approximately HK$104 million.

The report mentions that one of the main reasons why USDT frequently appears in investment scams is that it has a low purchase threshold and can be quickly transferred to wallet addresses controlled by scammers. After the funds are transferred out, they often continue to flow towards decentralized financial protocols or overseas trading platforms.

Additional information:The Financial Crimes Enforcement Network of the US Treasury Department previously stated that a large amount of suspicious funds involved in digital asset investment scams would ultimately be converted into stablecoins, with the vast majority of these funds flowing towards USDT.