The number of people in Hong Kong deceived by fraudulent cryptocurrency investment schemes from the mainland has reached over 118, with losses of about 3.2 million HKD.
The case investigated by the Hong Kong police shows that the suspects organized promotional events, defrauding over 3.8 million HKD from investors through a fraudulent virtual trading platform, causing serious damage and difficulties in recovering money due to the use of stablecoin USDT.
MAIN CONTENT
At least 118 people in Hong Kong have fallen into the trap of cryptocurrency scams from the mainland.
Police arrested 4 suspects related to organizing promotional events and embezzling 3.89 million HKD.
The 'DGCX Xinkangjia' platform is fake, using USDT as a payment method complicating the recovery of funds.
Why is cryptocurrency investment fraud spreading in Hong Kong?
Information from the North New Territories Criminal Investigation Team indicates that, since the beginning of 2025, suspects have organized workshops and events to attract investors with promises of high returns, particularly targeting individuals aged 33 to 80.
Legal experts say that the event organization model similar to 'DGCX Xinkangjia' has created a false sense of trust, leading many people to fall into the trap of investing in untrustworthy virtual platforms.
What does the head of the investigation think about the operation of 'DGCX Xinkangjia'?
Investigator Yuen Ho-ting confirmed that this platform is completely fraudulent, using new people's money to pay off old investors, creating a façade of continuous operations.
"DGCX Xinkangjia does not conduct any real investment transactions; all the money is used to maintain operations and pay victims withdrawing funds."
Yuen Ho-ting, Head of Investigation, July 16, 2025, Hong Kong police
Challenges in recovering money stolen from cryptocurrency scams
The use of stablecoin USDT for payments complicates the investigation and recovery process due to the anonymity and rapid liquidity of this cryptocurrency.
Specialized lawyers assert that USDT complicates the tracking of capital flows, reducing the effectiveness of protecting the rights of victims in multinational cryptocurrency cases.
What solutions do police and legal experts propose to mitigate risks?
Agencies are enhancing international cooperation to control opaque cryptocurrency transactions while raising community awareness about safe investing, especially in vulnerable areas like Hong Kong.
"Close cooperation among law enforcement agencies from many countries is key to combating increasingly sophisticated and cross-border cryptocurrency fraud."
Cybersecurity expert Linda Ho, Financial Security Conference 2025
Frequently asked questions
How to recognize a fraudulent cryptocurrency investment platform?
It is advisable to check the operating license, transaction transparency, and avoid platforms that promise returns too high compared to the market, according to financial regulatory recommendations.
Why do stablecoins like USDT complicate transaction tracing?
USDT allows for fast and almost anonymous money transfers on the Blockchain, making it difficult for police and investigators to track money flows.
What are the ways to protect yourself from cryptocurrency scams?
Always research the investment platform thoroughly, do not trust overly enticing investment invitations, and use secure wallets, avoiding unnecessary personal information disclosure.
What has the Hong Kong police done with the suspects in this scam?
On July 15, 2025, police arrested 4 Hong Kong individuals for 'conspiracy to defraud' directly related to the promotional event for the fraudulent investment model.
Will the scammed money be fully recovered?
It is very difficult to recover everything as most of the money has been withdrawn or transferred through multiple wallets on the Blockchain, according to investigators.
Source: https://tintucbitcoin.com/lua-dao-tien-dien-tu-trung-quoc-bi-bat/
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