Hong Kong’s losses from crypto scams doubled last year to $217 million.
Crypto-related scams in Hong Kong reportedly accounted for more than 50 percent of the $407 million stolen in tech crimes in 2022. Some countries around the world have suffered greater financial losses due to cryptocurrency scams despite the huge bear market in 2022.
Losses Reach $216.6 Billion
According to Hong Kong police, losses from crypto scams in the country reached HK$1.7 billion ($216.6 million) last year, a 106 percent increase over the previous year. In 2022, the number of reported crypto-related scams in Hong Kong reached 2,336 cases, an increase of 67 percent compared to 1,397 cases recorded by the police in 2021, the South China Morning Post reported.
Crypto-related Hong Kong scams accounted for more than 50 percent of the total HKD 3.2 billion ($407 million) stolen from city residents in tech crimes, according to official data on the Hong Kong police’s CyberDefender website. Crypto scams in the previous four years had reached HKD 3 billion.
Police have witnessed an increase in the use of cryptocurrencies as a tool for online fraud, as scammers can hide their identity, transaction flow and final destination, according to SCMP sources. Police departments said that the use of crypto in online crimes makes the tracking of crime funds more complicated.
Hong Kong has recently announced that the buying and selling of cryptocurrencies will be released from June 1, 2023.
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