Recently, a distressing virtual currency trading incident occurred in Hong Kong.

On April 17, a Mr. Luo brought 1 million HKD in cash to a place in Kwun Tong Hongtu Road that appeared to be a mobile phone store to exchange for USDT.

As a result, money was received but no currency was transferred, and the other party even snatched the cash on the spot. After Mr. Luo reported to the police, the other party arrogantly stated they were 'not afraid of the police' and arranged people to surround him, leaving him completely unable to resist.

Such incidents are not isolated cases.

According to Legislative Council member Wu Jiezhuang, there are currently over 200 unlicensed virtual currency exchange shops in Hong Kong, which can open as long as they have business registration, with almost no regulation.

They often use the guise of 'high exchange rates and fast deposits,' but may involve money laundering and fraud behind the scenes. There have been victims who were defrauded of as much as 7.1 million HKD.

Why can black shops continue to exist?

Virtual currency transactions are inherently concealed and difficult to regulate.

OTC (over-the-counter) market regulation is lagging.

Many 'exchange shops' appear normal on the surface, but are actually transit points for money laundering and fraud.

How to recognize and prevent?

✅ Recognize legitimate platforms:

Legitimate trading platforms usually require KYC identity verification and will not only accept cash.

✅ Be wary of abnormally high exchange rates:

If the exchange rate is significantly higher than the market (over 3%), be highly vigilant!

✅ Protect your devices and information:

Never let the other party control your phone.

Do not casually share your screen or download unfamiliar apps.

What to do if you get scammed?

Report to the police immediately and keep transaction records, chat screenshots, payment receipts, and other evidence.

Both domestic and Hong Kong police acknowledge the property attributes of virtual currencies such as USDT, which can be traced according to the law.

⚡ It is worth noting that the Hong Kong police have recently intensified their crackdown, for example, in an operation in April, 503 people were arrested at once, with involved amounts reaching as high as 1.56 billion HKD.

In addition, the Hong Kong government is promoting OTC regulatory legislation, and unlicensed operations will face strict restrictions in the future.

Summary

Virtual currency trading presents both opportunities and risks, and offline trading is especially dangerous.

Do not easily trust the temptation of high exchange rates; prioritize operating through legitimate platforms.

When uncertain, you can start with a small amount to test the waters, and proceed with larger transactions only after confirming safety.

Remember, protecting your hard-earned money is more important than anything else.