Law enforcement in Delhi and Hong Kong crack down on major crypto scams Law enforcement in Delhi and Hong Kong crack down on major crypto scams
Fraudsters posed as government officials, luring investors with false promises of renewable energy profits.
2 min read
Updated: Oct. 15, 2024 at 10:16 am UTC
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Delhi Police have seized over 100,000 USDT in digital assets and arrested several individuals involved in a sophisticated fraud operation, per The Hindu. The suspects were running a fraudulent entity named “M/s Goldcoat Solar,” falsely claiming government authorization to contribute to India’s renewable energy expansion.
The perpetrators misled investors by asserting they had secured rights from the Ministry of Power to support India’s goal of increasing solar power capacity to 450 gigawatts by 2030. They enticed individuals with promises of substantial returns, leveraging the national energy plan as a facade for their scheme.
The scam reportedly gained momentum through social media platforms, where “M/s Goldcoat Solar” was promoted as a legitimate investment opportunity. The fraudsters impersonated high-ranking government officials and used the names of dignitaries to falsely endorse the scheme. Investors were shown fabricated earnings reports from supposed earlier participants to build trust and legitimize the operation.
Funds deposited by victims were funneled through banks, with a portion converted into digital assets. With assistance from Binance, law enforcement traced the financial transactions to track down the suspects. Jarek Jakubcek, Head of Law Enforcement Training at Binance, noted the effectiveness of collaboration in such cases, stating that it highlights the positive outcomes of joint efforts between industry and law enforcement.
Hong Kong police arrest 27 in HK$360 million cross-border crypto fraud
In a related development, the Hong Kong Police Force (HKPF) dismantled a cross-border fraud center in Hong Kong, detaining 27 individuals connected to a scam exceeding HK$360 million, according to local news reports. The organization employed “romance scams” to deceive victims into investing in crypto.
Operating from a reportedly well-organized, 4,000-square-foot center in Hung Hom, the group recruited local university graduates specializing in digital media as technology experts. They collaborated with overseas fraudsters and IT specialists to create a fake crypto investment platform. Training manuals in Chinese and English were produced to instruct members on initiating fraudulent online relationships.
Using artificial intelligence-based deepfake technology, the scammers conducted video chats to convince victims they were engaging in romantic relationships with highly desirable women. This manipulation led victims from mainland China, Taiwan, India, and Singapore to invest in the bogus platform.
The HKPF arrested 21 men and six women, aged between 21 and 34, on charges of conspiracy to defraud and possession of offensive weapons. Key members of the group were among those detained. Police described the fraud center as unusually large and meticulously organized, emphasizing the sophistication of the operation.
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Also known as "Akiba," Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
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