Jupiter (jup) 
Authorities in Hong Kong have arrested three individuals for allegedly defrauding a businessman out of HK$3.11 million, approximately US$399,000, in cryptocurrency.
The scammers promised to exchange the victim’s cryptocurrency holdings for cash at an appealing rate. However, after the funds were transferred, the victim received counterfeit HK$1,000 banknotes.
The fraudsters deceived the victim by placing two genuine banknotes on top of three bundles of bank training notes offered in exchange for USDT. The victim was asked to transfer his HK$3.11 million in USDT to a wallet controlled by the scammers before receiving payment.
Training notes, used to train bank staff, closely resemble actual currency. The only distinguishing factor is three Chinese characters that mean “practice coupon.” These notes also lack the watermarks present in genuine currency, making them easy to mistake for real money if not carefully inspected.
Authorities reported that the victim requested to inspect the banknotes but was “refused” by the fraudsters, who claimed they had not received instructions from the store manager.
Scam Operation in Mong Kok
The scam took place in the Mong Kok area of Hong Kong, known for its marketplace. Upon raiding the scammer’s office, authorities seized 10,978 forged banknotes.
The arrested individuals face charges of obtaining property by deception and possession of counterfeit banknotes. If convicted, they could face up to 10 years in jail for deception and up to 14 years for producing, circulating, or passing counterfeit notes.
Increase in Similar Incidents
Hong Kong has seen multiple similar incidents over recent months. Last month, Hong Kong police seized HK$2.55 million worth of fake notes, approximately $326,130 at the time.
Most of these notes came from just three cryptocurrency scams involving the same cryptocurrency-for-cash scheme. These transactions also involved USDT.
Besides training notes, law enforcement also seized hell banknotes, which are gimmick notes used in traditional Chinese rituals as offerings to ancestors or deities.
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