Recently, a heart-wrenching virtual currency exchange incident occurred in Hong Kong. On April 17, a Mr. Luo, carrying 1 million Hong Kong dollars in cash, went to a place that looked like a mobile phone store on Hong Kong's Kwun Tong Hung To Road to exchange for USDT.
As a result, the other party took the money but did not transfer the currency, and amidst the chaos, they snatched away the cash. After Mr. Luo reported to the police, the other party even arrogantly said, 'Not afraid of the police,' and there were people blocking him on the scene, making it impossible to resist.
In fact, such incidents are not the first time in Hong Kong. Legislative Council member Wu Jiezhuang stated that there are over 200 unlicensed virtual currency exchange shops across Hong Kong, and these shops can open as long as they have business registration, with no regulation at all. They attract customers with 'high exchange rates and fast transactions,' but behind it may involve xq and zp.
Why do these black shops continue to exist? Because virtual currency transactions themselves are relatively hidden, coupled with Hong Kong's regulatory oversight of OTC (over-the-counter trading) has not kept pace. Many exchange shops appear to be ordinary stores, but in reality, they are transit stations for xq. Some housewives have even been cheated out of 7.1 million Hong Kong dollars.
Here, I would like to remind everyone to be cautious when encountering such exchange shops. First, legitimate exchange platforms will require identity verification and will not only accept cash. Secondly, if the exchange rate is significantly higher than the market, such as more than 3% higher, it is likely a trap.
Additionally, never let the other party control your phone during the transaction, such as screen sharing or downloading unknown apps; these are common tactics used by scammers.
If you unfortunately encounter fraud, what should you do?
Report to the police immediately (the domestic side recognizes the value of USDT), and keep good transaction records and on-site evidence. The Hong Kong police have recently strengthened their crackdown efforts; for example, an operation in April arrested 503 people, involving an amount of 1.56 billion Hong Kong dollars.
At the same time, the government is also promoting OTC regulatory legislation, and in the future, exchange shops may need a license to operate.
In short, virtual currency trading is very risky, especially offline exchanges. Do not be easily tempted by high returns, and try to operate through legitimate platforms.
If unsure, you can first try a small amount to confirm safety before engaging in large transactions. Protecting your hard-earned money is more important than anything else.
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