Hong Kong Police Bust Deepfake Crypto Scam Syndicate Involving $34 Million

Hong Kong police recently dismantled a criminal syndicate that used deepfake technology to perpetrate cryptocurrency investment scams. The group posed as individuals on social media platforms to lure victims into investing in fake platforms, with the scam involving up to HK$34 million.

According to the police, the Commercial Crime Bureau acted on intelligence last week and launched raids on two industrial buildings in Kowloon Bay. A total of 31 suspects, aged between 20 and 34, were arrested, with some identifying as students or unemployed. During the operation, police seized meticulously prepared “scripts” revealing that the syndicate employed highly trained and systematically designed methods for their scams.

Police disclosed that the group specifically recruited young people eager to get rich quickly, training them to create fake accounts on dating platforms. These members pretended to be individuals with attractive appearances and luxurious lifestyles to establish connections with potential victims, mainly from overseas, including Taiwan and other East Asian regions. Following the “scripts,” the scammers built online romantic relationships with their targets. To enhance credibility, the group employed deepfake technology for video calls before convincing victims to invest in cryptocurrency through fraudulent platforms. Once the victims transferred their funds, the syndicate quickly moved the money and severed all communication.

The police revealed that the syndicate had been operating for at least a year, amassing illegal gains of over HK$34 million. To minimize risk and maintain secrecy, the group rented two industrial buildings in Kowloon Bay as scam centers and operated on a 24-hour shift system to maximize contact with potential victims.

The acting Chief Superintendent of the Commercial Crime Bureau emphasized that any involvement in scam operations, even merely engaging with victims online without handling funds, is illegal and will face severe penalties. The police warned that conspiracy to defraud is a serious offense punishable by up to 14 years in prison. Additionally, as some victims were located overseas and the fraudulent platforms were hosted outside Hong Kong, the police will collaborate with international law enforcement agencies for further investigation.

Currently, five key figures of the syndicate, including the masterminds and core members, have been charged with conspiracy to defraud and money laundering. The case will be heard at the Eastern Magistrates Court.