Hong Kong police have arrested three men who are allegedly tied to a HK$230,000 (US$30,000) bitcoin ATM scam. The three men are believed by authorities to be part of a larger group.

As crypto scams around the world continue to trick people in parting with their hard-earned money, Hong Kong police have arrested three men who are allegedly tied to a HK$230,000 (US$30,000) bitcoin scam. According to the South China Morning Post report, the three men are believed by authorities to be part of a larger group that has scammed bitcoin ATMs out of the thousands of dollars.

It is the first case of its kind in Hong Kong

The crypto is claimed to be the first case of its kind in the city. It has come to light after two cryptocurrency exchanges filed reports in recent days, suspecting that the fraudsters were taking advantage of “loopholes” in the bitcoin ATM, which allowed them to withdraw the cash despite not having official authorizations.

Bitcoin ATMs in the city enables authorized personnel to purchase bitcoin by cash or credit card. In some instances, the machines will also allow crypto to be sold for cash. According to the report, police have refused to elaborate further on how exactly the scammers could exploit the machines’ loopholes.

Crypto scams are on the rise amid the ongoing pandemic

Crypto scams have increased around the world amid the ongoing COVID-19 pandemic. As reported earlier, the Attorney General of state California, Xavier Becerra, issued a warning for investors and consumers on Friday, highlighting the rise in cryptocurrency scams. The warning was to inform people of the rising crypto-related scams that are taking round online and stay cautious.

Several countries have reported a surge in crypto scams that included a spike in ransomware attacks, Ponzi schemes, and other different types of scams involving cryptocurrencies. Fake giveaways, sextortion, fake exchanges, fake ICO’s, bitcoin recovery, video scams, pyramid schemes are among the types of scams that quite prevalent.

Aug 29th, 2020 00:40:29