A Hong Kong businessman and his son have surrendered to police in connection with the abduction of a cryptocurrency investor. The 70-year-old man and his 30-year-old son were arrested on suspicion of false imprisonment and assault, and they remain in custody for questioning. Accompanied by their lawyer, the pair turned themselves in at Tai Po Police Station on Wednesday afternoon. Investigations revealed that the vehicle used in the abduction incident belonged to their family. The businessman’s frustration reportedly stemmed from his investment in a cryptocurrency project approximately 18 months ago, which ultimately led to the unfortunate abduction incident.
The businessman had invested approximately HK$15 million (US$1.9 million) in virtual currency around 18 months ago with the assistance of the victim. The inability of the investor to repay the funds led to escalating tensions, resulting in the abduction incident. The abduction took place in the Sheung Shui residential district, where the victim’s husband attempted to intervene and was attacked with a stun gun. Both the husband and wife sustained injuries primarily to their limbs and were subsequently hospitalized for treatment. As of midday on Thursday, police were still searching for the four individuals directly involved in the abduction and assault, with the detectives from the Tai Po district crime squad leading the investigation.
In Hong Kong, losses from cryptocurrency scams surged to 1.7 billion Hong Kong dollars ($216.6 million) in 2022, marking a significant increase of 106% from the previous year. The number of reported crypto-related scams also saw a notable rise, reaching 2,336 cases in 2022, representing a 67% surge from 2021. These scams accounted for over 50% of the total 3.2 billion HK$ stolen from city residents in technology-related crimes last year. Online scammers targeted victims by posing as experienced investors in crypto assets, precious metals, or foreign exchange products, luring them into fraudulent investment applications and promising fake returns.
The surge in crypto-related scams has been attributed to the anonymity and complexity offered by cryptocurrencies, making it challenging for law enforcement to track the flow of funds and identify perpetrators. The Hong Kong police cybersecurity and technology crime bureau observed increased use of cryptocurrencies as a medium for online scams, complicating efforts to trace criminal proceeds. With almost 23,000 reported cases of technology-related crimes in 2022, authorities in Hong Kong face growing challenges in combating online fraud, particularly within cryptocurrency. The rise in scams has raised concerns about the security and regulation of the cryptocurrency market in Hong Kong, highlighting the need for increased vigilance and measures to protect investors from fraudulent schemes.
The surrendered suspects, although not directly involved in the abduction, played a crucial role in the incident, as the vehicle used belonged to their family. The victim’s inability to repay the funds invested by the businessman led to escalating tensions, culminating in the abduction incident. The Hong Kong police are actively investigating the case, with detectives from the Tai Po district crime squad leading the efforts to locate the four individuals directly involved in the assault. The surge in cryptocurrency scams in Hong Kong reflects a broader trend of online fraud targeting victims through sophisticated tactics, posing challenges for law enforcement agencies in combating financial crimes in the digital age. With the increasing adoption of cryptocurrencies as a medium for investment and transactions, investors must exercise caution and due diligence to protect themselves from falling victim to fraudulent schemes.
