Hong Kong Businessman, Son in Crypto Kidnap Case

A Hong Kong businessman’s son surrendered in a crypto investor kidnapping. A dispute over a $1.9 million investment led to abduction.

According to police sources, the 70-year-old man and his 30-year-old son were arrested on suspicion of false imprisonment and assault. They were still being questioned and detained on Thursday morning.

Hong Kong Police Arrest Suspects in a Case of Cryptocurrency-Related Theft

The two individuals and their legal representative reported to the Tai Po Police Station on Wednesday afternoon. Following this, they were apprehended on charges of false imprisonment and assault.

While the suspects who were arrested did not have a direct role in the abduction, subsequent investigations revealed that the vehicle involved belonged to their family.

According to reports, the entrepreneur’s discontent originated from his investment in the cryptocurrency venture around eighteen months ago. Notwithstanding the initial optimism, the investor’s failure to reimburse the funds precipitated tensions and, ultimately, the regrettable abduction occurrence.

Around eighteen months ago, the industrialist purportedly invested around HK$15 million (US$1.9 million) in virtual currency with the support of the victim, an individual he had become acquainted with via referrals. Initial inquiries indicate that the entrepreneur faced challenges recovering the invested capital, and the target needed more support.

Authorities in Hong Kong state that the abduction occurred in the residential area of Sheung Shui, where the spouse of the victim was assaulted with a Taser gun while attempting to intervene. Both spouses suffered injuries predominantly to their lower extremities and were consequently admitted to the hospital for medical attention.

As of Thursday at noon, the pursuit of the four individuals directly implicated in the abduction and assault was ongoing by the authorities. The Tai Po district crime squad is investigating this incident, which represents the second abduction in the city within 32 hours.

“The possibility that the four men were remunerated for their services cannot be ruled out,” an unidentified source in the report stated.

The amount of money lost in cryptocurrency scams in Hong Kong increased to $216.6 million in 2022

As per the findings of the Hong Kong local police, cryptocurrency fraud-related losses soared to 1.7 billion Hong Kong dollars ($216.6 million) in 2022, an increase of 106% compared to the previous year.

There was a significant increase in reported crypto-related frauds, which amounted to 2,336 cases in 2022, a 67% growth compared to 2021.

According to the Hong Kong Police Cyber-Defender website, these frauds made up more than half of the total 3.2 billion HKD ($407 million) that city residents stole in technology-related crimes the previous year.

Throughout the last four years, cybercriminals have persistently preyed upon unsuspecting individuals, squandering an estimated 3 billion Hong Kong dollars annually.

The complexity and anonymity provided by cryptocurrencies have been cited as factors contributing to the increase in crypto-related fraud, as they make it difficult for law enforcement to trace the movement of funds and identify the wrongdoers.

The Cybersecurity and Technology Crime Bureau of the Hong Kong Police has noticed an increase in the use of cryptocurrencies as a medium for online schemes, which has made it more difficult to track down criminal proceeds.

According to credible sources, scammers frequently impersonate seasoned investors in foreign exchange products, precious metals, or crypto assets by enticing victims to install fraudulent investment applications and making false promises of returns and transactions.

Due to these strategies’ implementation, victims cannot ascertain the legitimacy of the investment schemes, which results in substantial financial losses.

Given the nearly 23,000 technology-related crimes reported in Hong Kong in 2022, the city will confront increasing difficulties in combating online fraud, especially concerning cryptocurrencies.