Hong Kong authorities have arrested three individuals accused of defrauding a businessman of HK$3.11 million (approximately US$399,000) in cryptocurrency. The scammers reportedly offered to exchange the victim’s cryptocurrency for cash at a favorable rate but instead provided counterfeit HK$1,000 banknotes after receiving the funds.
The scammers tricked the victim by placing two genuine banknotes on top of three bundles of training notes, which they offered in exchange for USDT. The victim transferred HK$3.11 million in USDT to a wallet controlled by the fraudsters, expecting payment.
Training notes are used for bank staff training and closely resemble real currency, except for the Chinese characters “practice coupon” printed on them. These notes lack watermarks found on genuine currency but can easily be mistaken for real money.
Authorities reported that when the victim requested to inspect the banknotes, the fraudsters refused, claiming they had not received instructions from the store manager.
In the Mong Kok area of Hong Kong, known for its bustling marketplace, authorities raided a scammer’s office and seized 10,978 counterfeit banknotes. The individuals involved have been arrested on suspicion of deception and possession of counterfeit currency. If convicted, they face up to 10 years in jail for deception and up to 14 years for producing or circulating counterfeit notes.
Similar incidents have been reported in Hong Kong recently. Last month, police seized HK$2.55 million (approximately $326,130) in fake notes linked to cryptocurrency scams involving USDT.
Among the seized items were training notes used for bank staff education and hell banknotes, used in traditional Chinese rituals as offerings to ancestors or deities.