Hong Kong Police Arrest Four in Cryptocurrency Scam

July 15, 2025, saw the arrest of four Hong Kong locals accused of organizing a fraudulent cryptocurrency investment scheme, affecting 118 individuals and resulting in losses of HK$3.2 million.

This incident highlights ongoing challenges in combating virtual currency fraud and raises concerns about regulatory frameworks to protect investors.

Hong Kong Scam: 118 Victims Lose HK$3.2 Million

The Hong Kong police arrested four residents on July 15, 2025, for their alleged role in promoting a fraud involving a fake crypto platform, DGCX Xinkangjia. Chief Inspector Yuen Ho-ting provided details on the scam and the victims’ demographics.

The fraudulent scheme, which used USDT for transactions, led to unrecovered losses of about HK$3.2 million, impacting 118 victims. Such cases illustrate vulnerabilities in digital currency investments.

“The investigation confirmed that DGCX Xinkangjia was a fake trading platform, and the victims’ funds had not been invested in any real way. Part of the funds were used to maintain the operation of the platform, and some of the funds were believed to be used to cope with the withdrawals of other victims.” — Yuen Ho-ting, Chief Inspector, Hong Kong Police

Stablecoin Use Prompts Calls for Stricter Regulations

Did you know? Cryptocurrency scams often exploit stablecoins like USDT due to their liquidity, creating significant challenges for law enforcement in asset recovery.

As per CoinMarketCap, Tether USDt (USDT) maintains a stable price at $1.00, with a market cap of $161.63 billion. Despite a decrease in daily trading volume by 50.21%, USDT remains steady with minor fluctuations over the past three months.

The Coincu research team suggests that stablecoins’ use in fraudulent activities necessitates stricter regulations and enhanced tracking technologies, potentially reshaping digital currency laws globally.