Tsim Sha Tsui Businessmen Robbed - Revision history

Azoundria: Another 30 minutes complete. Prevention added and much more research.

2023-06-16T19:20:56Z

Another 30 minutes complete. Prevention added and much more research.

← Older revision		Revision as of 13:20, 16 June 2023
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	== About Super Coin Cryptocurrency Exchange ==		== About Super Coin Cryptocurrency Exchange ==
	The Super Coin cryptocurrency exchange<ref name="dimsumdaily-8316" /> promoted itself through WhatsApp and Facebook<ref name=":0">[https://www.facebook.com/Fortune-foodie-%E6%A0%AA%E5%BC%8F%E6%9C%83%E7%A4%BE-100493384799537/videos/super-coin-crypto%E9%A6%99%E6%B8%AF%E5%8A%A0%E5%AF%86%E8%B2%A8%E5%B9%A3%E9%A0%90%E7%B4%84whatsapp-httpswame85259307065tg-httpstmesupercoincrypto/825955015473451/?locale=ms_MY Fortune Foodie Promotion For Super Coin - WhatsApp] (Jun 13, 2023)</ref>. The particular location was leased starting in April 2022.<blockquote>Super Coin Exchange Shop		The Super Coin cryptocurrency exchange, located in the Chungking Mansions shopping mall, No. 36 to 44 Nathan Road<ref name="dimsumdaily-8316" /> promoted itself through WhatsApp and Facebook<ref name=":0">[https://www.facebook.com/Fortune-foodie-%E6%A0%AA%E5%BC%8F%E6%9C%83%E7%A4%BE-100493384799537/videos/super-coin-crypto%E9%A6%99%E6%B8%AF%E5%8A%A0%E5%AF%86%E8%B2%A8%E5%B9%A3%E9%A0%90%E7%B4%84whatsapp-httpswame85259307065tg-httpstmesupercoincrypto/825955015473451/?locale=ms_MY Fortune Foodie Promotion For Super Coin - WhatsApp] (Jun 13, 2023)</ref>. The particular location was leased starting in April 2022.<blockquote>Super Coin Exchange Shop

	🌟Welcome experts to transfer goods🌟		🌟Welcome experts to transfer goods🌟
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	USDT-7.75 price discount than everyone</blockquote>		USDT-7.75 price discount than everyone</blockquote>

			The Super Coin cryptocurrency exchange had previously been used for an even larger trade successfully, in Tether (USDT) coins worth $4.5m HKD (~$573k USD). That trade had completed successfully without any issue.

			"It is understood that the female staff had previously traded virtual currency with the scammer, and today’s transaction was only possible due to the successful completion of the previous transaction. The two parties originally traded Tether coins worth about 4.5 million Hong Kong dollars, but this round Choi first transferred the Tether coins worth about 1.5 million Hong Kong dollars to the buyer’s account, and the whole transaction was completed before the other party paid the full amount."


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	== The Reality ==		== The Reality ==
			The location of the exchange had been "leased by a shell company for HK$4,000 (US$509) per month in April"<ref name="forkastnews-8313" /> (just a month prior). At the location, there was a cash register which was not connected to power and a computer which was an empty box<ref name="forkastnews-8313" />.


	This sections is included if a case involved deception or information that was unknown at the time. Examples include:		This sections is included if a case involved deception or information that was unknown at the time. Examples include:

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	* How the service was structured behind the scenes. (For example, there was no "trading bot".)		* How the service was structured behind the scenes. (For example, there was no "trading bot".)
	* Details of what audits reported and how vulnerabilities were missed during auditing.		* Details of what audits reported and how vulnerabilities were missed during auditing.
	"The suspect allegedly lured the victim and two colleagues into the meeting room of a shop in Tsim Sha Tsui." "The virtual currency exchange shop involved has been in business for about a month, and there was a money counter and a tablet computer with no information left in the store." "Tong said the trading location was leased by a shell company for HK$4,000 (US$509) per month in April."

	~~"The shop’s cash register was not connected to a power outlet and the “computer” was an empty box."~~ “Inside the shop, the banknote counter was not connected to electricity. What looked like computers were just empty cases,” said Inspector Tong Sin-tung of the Yau Tsim criminal investigation unit on Wednesday."
			“Inside the shop, the banknote counter was not connected to electricity. What looked like computers were just empty cases,” said Inspector Tong Sin-tung of the Yau Tsim criminal investigation unit on Wednesday."

	== What Happened ==		== What Happened ==
	The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.		The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.

	"It is understood that the female staff had previously traded virtual currency with the scammer, and today’s transaction was only possible due to the successful completion of the previous transaction. The two parties originally traded Tether coins worth about 4.5 million Hong Kong dollars, but this round Choi first transferred the Tether coins worth about 1.5 million Hong Kong dollars to the buyer’s account, and the whole transaction was completed before the other party paid the full amount."

			According to the police, the suspect engaged in a face-to-face cryptocurrency transaction with the victim at a business establishment in Tsim Sha Tsui on May 4. After receiving the crypto transfer, the suspect fled through a side door, leaving the victim locked inside.

	"[T]he victim transferred $HK1.5M (US$191,085) to an e-wallet." "The buyer later showed up, obtained the relevant virtual currency transaction link from the three people, and falsely claimed to go to the staff room of the exchange to get cash payment. He then locked the glass front door of the shop before entering the staff room."		"[T]he victim transferred $HK1.5M (US$191,085) to an e-wallet." "The buyer later showed up, obtained the relevant virtual currency transaction link from the three people, and falsely claimed to go to the staff room of the exchange to get cash payment. He then locked the glass front door of the shop before entering the staff room."
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	\|April 14th, 2022		\|April 14th, 2022
	\|Lease And Social Media Promotion		\|Lease And Social Media Promotion
	\|A shell company starts to lease the shop in Tsim Sha Tsui in April. Promotions for the Super Coin exchange start to appear on WhatsApp<ref name=":0" />.		\|A shell company starts to lease the shop in Tsim Sha Tsui in April<ref name="forkastnews-8313" />. Promotions for the Super Coin exchange start to appear on WhatsApp<ref name=":0" />. It is also understood that the victim successfully swapped Tether (USDT) coins worth $4.5m HKD (~$573k USD) at some point prior to the incident in question.
	\|-		\|-
	\|May 3rd, 2022 11:11:00 PM MDT		\|May 3rd, 2022 11:11:00 PM MDT
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	\|May 11th, 2022 10:24:00 PM MDT		\|May 11th, 2022 10:24:00 PM MDT
	\|Forkast Reports Suspect Arrested		\|Forkast Reports Suspect Arrested
	\|Asian news outlet Forkast reports that the suspect was successfully arrested<ref name="forkastnews-8313" />.		\|Asian news outlet Forkast reports that the 24-year-old suspect has been arrested by Hong Kong police for allegedly stealing HK$1.5 million (US$191,076) in cryptocurrencies through a physical cash-to-crypto transaction. The theft, considered a rare on-site cryptocurrency theft, is being treated as a serious crime that carries a potential 10-year prison sentence. According to the police, the suspect engaged in a face-to-face cryptocurrency transaction with the victim at a business establishment in Tsim Sha Tsui on May 4. After receiving the crypto transfer, the suspect fled through a side door, leaving the victim locked inside. The investigation is ongoing, and the police are looking into the possibility of accomplices and potential further arrests.the suspect was successfully arrested<ref name="forkastnews-8313" />.
	\|}		\|}

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	The victims made a transfer of cryptocurrency funds, which was intended to be exchanged for cash. However, the perpetrator did not provide any cash and instead locked them in the store.		The victims made a transfer of cryptocurrency funds, which was intended to be exchanged for cash. However, the perpetrator did not provide any cash and instead locked them in the store.

			"It is understood that the female staff had previously traded virtual currency with the scammer, and today’s transaction was only possible due to the successful completion of the previous transaction. The two parties originally traded Tether coins worth about 4.5 million Hong Kong dollars, but this round Choi first transferred the Tether coins worth about 1.5 million Hong Kong dollars to the buyer’s account, and the whole transaction was completed before the other party paid the full amount."


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	"Tong said the police are seeking to determine if the suspect was working alone, adding that the ongoing investigation could result in further arrests."		"Tong said the police are seeking to determine if the suspect was working alone, adding that the ongoing investigation could result in further arrests."


			Asian news outlet Forkast reports that the 24-year-old suspect has been arrested by Hong Kong police. The theft, considered a rare on-site cryptocurrency theft, is being treated as a serious crime that carries a potential 10-year prison sentence<ref name="forkastnews-8313" />.

	== Total Amount Recovered ==		== Total Amount Recovered ==
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	== Ongoing Developments ==		== Ongoing Developments ==
	~~What parts~~ of ~~this case~~ are ~~still remaining~~ to ~~be concluded?~~		The investigation is ongoing, and the police are looking into the possibility of accomplices and potential further arrests.the suspect was successfully arrested. "Tong said the police are seeking to determine if the suspect was working alone, adding that the ongoing investigation could result in further arrests."<ref name="forkastnews-8313" />
	== ~~General~~ Prevention Policies ==		== Individual Prevention Policies ==
	The simplest way to avoid this situation is to be sure that you have physical visibility of the cash prior to authorizing any irreversible payment. Performing transactions in multiple stages or using an escrow agent to temporarily hold the funds can further the safety of such transactions.		The simplest way to avoid this situation is to be sure that you have physical visibility of the cash prior to authorizing any irreversible payment. Performing transactions in multiple stages or using an escrow agent to temporarily hold the funds can further the safety of such transactions.
	~~== Individual Prevention Policies ==~~
	{{Prevention:Individual:~~Avoid Large Cash~~ Transactions}}		{{Prevention:Individual:Handling In-Person Transactions}}

	{{Prevention:Individuals:End}}		{{Prevention:Individuals:End}}

	== Platform Prevention Policies ==		== Platform Prevention Policies ==
	{{Prevention:Platforms:~~Placeholder~~}}		{{Prevention:Platforms:No Platform Funds Lost}}

	{{Prevention:Platforms:End}}		{{Prevention:Platforms:End}}

	== Regulatory Prevention Policies ==		== Regulatory Prevention Policies ==
			{{Prevention:Regulators:Physical Theft Prevention}}

	{{Prevention:Regulators:Cryptocurrency Education Mandate}}		{{Prevention:Regulators:Cryptocurrency Education Mandate}}

Azoundria: Another 30 minutes complete.

2023-06-14T18:03:14Z

Another 30 minutes complete.

← Older revision		Revision as of 12:03, 14 June 2023
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	{{Imported Case Study 2\|source=https://www.quadrigainitiative.com/casestudy/tsimshatsuibusinessmenrobbed.php}}[[File:Tsimshatsui.jpg\|thumb\|~~None~~]]In Tsim Sha Tsui, a region of Hong Kong, a group of business-people were tricked out of $1.5m HKD (~$191k USD). They had previously transacted with the trader for an even larger sum without issue. They were led to a room which was full of fake equipment and made their transfer. The trader then locked the front door and headed into the other room, pretending to talk to others in the room to prepare the funds but instead leaving through a back entrance. Police were called and ultimately managed to apprehend the suspect. It is unclear if any of the funds were recovered.		{{Imported Case Study 2\|source=https://www.quadrigainitiative.com/casestudy/tsimshatsuibusinessmenrobbed.php}}[[File:Tsimshatsui.jpg\|thumb\|Chungking Mansions]]In Tsim Sha Tsui, a region of Hong Kong, a group of business-people were tricked out of $1.5m HKD (~$191k USD). They had previously transacted with the trader for an even larger sum without issue. They were led to a room which was full of fake equipment and made their transfer. The trader then locked the front door and headed into the other room, pretending to talk to others in the room to prepare the funds but instead leaving through a back entrance. Police were called and ultimately managed to apprehend the suspect. It is unclear if any of the funds were recovered.

	== About Chungking Mansions Exchange Shop ==		== About Chungking Mansions Exchange Shop ==
			Chungking Mansions is a building in Hong Kong that was originally intended for residential use but has become a hub for low-budget hotels, shops, and various services. It is known for its unique atmosphere, often compared to the former Kowloon Walled City. The building houses guesthouses, curry restaurants, African bistros, clothing shops, sari stores, and foreign exchange offices. It serves as a gathering place for diverse ethnic minorities in Hong Kong, including South Asians, Middle Eastern people, Nigerians, Europeans, Americans, and others. The complex has been unofficially referred to as the "African quarter of Hong Kong." Since its completion in 1961, the number of residents has grown to an estimated 4,000 people<ref>[[wikipedia:Chungking_Mansions\|Chungking Mansions - Wikipedia]] (Jun 13, 2023)</ref>.

			== About Super Coin Cryptocurrency Exchange ==
			The Super Coin cryptocurrency exchange<ref name="dimsumdaily-8316" /> promoted itself through WhatsApp and Facebook<ref name=":0">[https://www.facebook.com/Fortune-foodie-%E6%A0%AA%E5%BC%8F%E6%9C%83%E7%A4%BE-100493384799537/videos/super-coin-crypto%E9%A6%99%E6%B8%AF%E5%8A%A0%E5%AF%86%E8%B2%A8%E5%B9%A3%E9%A0%90%E7%B4%84whatsapp-httpswame85259307065tg-httpstmesupercoincrypto/825955015473451/?locale=ms_MY Fortune Foodie Promotion For Super Coin - WhatsApp] (Jun 13, 2023)</ref>. The particular location was leased starting in April 2022.<blockquote>Super Coin Exchange Shop

			🌟Welcome experts to transfer goods🌟

			To thank new and old customers

			Launched the Thanksgiving Feedback Activity Plan

			USDT-7.75 price discount than everyone</blockquote>



			"the police received a report from a woman who said that she and her employer had met a buyer in “Super Coin” crypto currency exchange shop to trade bitcoins in the Chungking Mansions shopping mall, No. 36 to 44 Nathan Road earlier."



	"A male businessman surnamed Choi (30 years old) who owns a company in Tsim Sha Tsui specialising in crypto currency trading, brought his male staff member (30 years old) and a female staff member surnamed Cheng (26 years old) to a crypto currency exchange shop in Chungking Mansions to trade Tether coins with a male buyer."		"A male businessman surnamed Choi (30 years old) who owns a company in Tsim Sha Tsui specialising in crypto currency trading, brought his male staff member (30 years old) and a female staff member surnamed Cheng (26 years old) to a crypto currency exchange shop in Chungking Mansions to trade Tether coins with a male buyer."

	"At 1.11pm, the police received a report from a woman who said that she and her employer had met a buyer in “Super Coin” crypto currency exchange shop to trade bitcoins in the Chungking Mansions shopping mall, No. 36 to 44 Nathan Road earlier."		"At 1.11pm, the police received a report from a woman who said that she and her employer had met a buyer in “Super Coin” crypto currency exchange shop to trade bitcoins in the Chungking Mansions shopping mall, No. 36 to 44 Nathan Road earlier."

	"It is understood that the female staff had previously traded virtual currency with the scammer, and today’s transaction was only possible due to the successful completion of the previous transaction. The two parties originally traded Tether coins worth about 4.5 million Hong Kong dollars, but this round Choi first transferred the Tether coins worth about 1.5 million Hong Kong dollars to the buyer’s account, and the whole transaction was completed before the other party paid the full amount."


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	== What Happened ==		== What Happened ==
	The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.		The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.

			"It is understood that the female staff had previously traded virtual currency with the scammer, and today’s transaction was only possible due to the successful completion of the previous transaction. The two parties originally traded Tether coins worth about 4.5 million Hong Kong dollars, but this round Choi first transferred the Tether coins worth about 1.5 million Hong Kong dollars to the buyer’s account, and the whole transaction was completed before the other party paid the full amount."


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	!Event		!Event
	!Description		!Description
			\|-
			\|April 14th, 2022
			\|Lease And Social Media Promotion
			\|A shell company starts to lease the shop in Tsim Sha Tsui in April. Promotions for the Super Coin exchange start to appear on WhatsApp<ref name=":0" />.
	\|-		\|-
	\|May 3rd, 2022 11:11:00 PM MDT		\|May 3rd, 2022 11:11:00 PM MDT
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	\|Asian news outlet Forkast reports that the suspect was successfully arrested<ref name="forkastnews-8313" />.		\|Asian news outlet Forkast reports that the suspect was successfully arrested<ref name="forkastnews-8313" />.
	\|}		\|}

			== Technical Details ==
			According to the police report, the transaction took place in a "Super Coin" cryptocurrency exchange shop<ref name="dimsumdaily-8316" />. It appears that this location had been specially set up ahead of time to give the appearance of legitimacy, with fake computers and a cash register which was not hooked up to any power.

			The victims made a transfer of cryptocurrency funds, which was intended to be exchanged for cash. However, the perpetrator did not provide any cash and instead locked them in the store.


			"[T]he victim transferred $HK1.5M (US$191,085) to an e-wallet." "The buyer later showed up, obtained the relevant virtual currency transaction link from the three people, and falsely claimed to go to the staff room of the exchange to get cash payment. He then locked the glass front door of the shop before entering the staff room."

			"It is believed that someone deliberately committed the crime." "The suspect then exited the premises under the pretense that he would get cash for the victim." "The scammer claimed that when he entered the staff room to get money, he shouted “Please prepare cash in HK$1,000 banknotes!” pretending that there were other people in the staff room in order to reduce the victims’ suspicion."

			"After the victim transferred the crypto to the suspect’s wallet, the suspect fled through a side door and locked the victim inside." "He falsely claimed that he needed to go to withdraw money, locked the victims in the shop and left the scene. The victims later realised that they had been deceived, and found that more than HK$1.5 million worth of crypto coins in their account had been transferred away so one of the staff members immediately called the police for help."

	== Total Amount Lost ==		== Total Amount Lost ==
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	== Ultimate Outcome ==		== Ultimate Outcome ==
	What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?		What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?



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	The simplest way to avoid this situation is to be sure that you have physical visibility of the cash prior to authorizing any irreversible payment. Performing transactions in multiple stages or using an escrow agent to temporarily hold the funds can further the safety of such transactions.		The simplest way to avoid this situation is to be sure that you have physical visibility of the cash prior to authorizing any irreversible payment. Performing transactions in multiple stages or using an escrow agent to temporarily hold the funds can further the safety of such transactions.
	== Individual Prevention Policies ==		== Individual Prevention Policies ==
	{{Prevention:~~Individuals~~:~~Placeholder~~}}		{{Prevention:Individual:Avoid Large Cash Transactions}}

	{{Prevention:Individuals:End}}		{{Prevention:Individuals:End}}
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	== Regulatory Prevention Policies ==		== Regulatory Prevention Policies ==
	{{Prevention:Regulators:~~Placeholder~~}}		{{Prevention:Regulators:Cryptocurrency Education Mandate}}

	{{Prevention:Regulators:End}}		{{Prevention:Regulators:End}}

Azoundria: All sources spread. Initial 30 minutes completed.

2023-04-14T21:49:07Z

All sources spread. Initial 30 minutes completed.

Show changes

Azoundria at 16:11, 12 April 2023

2023-04-12T16:11:22Z

← Older revision		Revision as of 10:11, 12 April 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/tsimshatsuibusinessmenrobbed.php}}		{{Imported Case Study 2\|source=https://www.quadrigainitiative.com/casestudy/tsimshatsuibusinessmenrobbed.php}}
			{{Unattributed Sources}}

	[[File:Tsimshatsui.jpg\|thumb\|None]]In Tsim Sha Tsui, a region of Hong Kong, a group of business-people were tricked out of $1.5m HKD (~$191k USD). They had previously transacted with the trader for an even larger sum without issue. They were led to a room which was full of fake equipment and made their transfer. The trader then locked the front door and headed into the other room, pretending to talk to others in the room to prepare the funds but instead leaving through a back entrance. Police were called and ultimately managed to apprehend the suspect. It is unclear if any of the funds were recovered.		[[File:Tsimshatsui.jpg\|thumb\|None]]In Tsim Sha Tsui, a region of Hong Kong, a group of business-people were tricked out of $1.5m HKD (~$191k USD). They had previously transacted with the trader for an even larger sum without issue. They were led to a room which was full of fake equipment and made their transfer. The trader then locked the front door and headed into the other room, pretending to talk to others in the room to prepare the funds but instead leaving through a back entrance. Police were called and ultimately managed to apprehend the suspect. It is unclear if any of the funds were recovered.

	This exchange or platform is based in Hong Kong, or the incident targeted people primarily in Hong Kong.		This exchange or platform is based in Hong Kong, or the incident targeted people primarily in Hong Kong.<ref name="cryptonews-8310" /><ref name="beincrypto-8312" /><ref name="forkastnews-8313" /><ref name="cryptosaurus-8314" /><ref name="cryptosnewss-8315" /><ref name="dimsumdaily-8316" /><ref name="facebook-8317" />

	== About None ==		== About None ==
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	!Description		!Description
	\|-		\|-
	\|May 3rd, 2022 11:11:00 PM		\|May 3rd, 2022 11:11:00 PM MDT
	\|Main Event		\|Main Event
	\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
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	== Ongoing Developments ==		== Ongoing Developments ==
	What parts of this case are still remaining to be concluded?		What parts of this case are still remaining to be concluded?
			== General Prevention Policies ==
			The simplest way to avoid this situation is to be sure that you have physical visibility of the cash prior to authorizing any irreversible payment. Performing transactions in multiple stages or using an escrow agent to temporarily hold the funds can further the safety of such transactions.
			== Individual Prevention Policies ==
			{{Prevention:Individuals:Placeholder}}

			{{Prevention:Individuals:End}}

	== Prevention Policies ==		== Platform Prevention Policies ==
	The simplest way to avoid this situation is to be sure that you have physical visibility of the cash prior to authorizing any irreversible payment. Performing transactions in multiple stages or using an escrow agent to temporarily hold the funds can further the safety of such transactions.		{{Prevention:Platforms:Placeholder}}

			{{Prevention:Platforms:End}}

			== Regulatory Prevention Policies ==
			{{Prevention:Regulators:Placeholder}}

			{{Prevention:Regulators:End}}

	== References ==		== References ==
	[https://cryptonews.net/news/regulation/6390555/ Suspect Arrested in Hong Kong for Scamming Crypto Trader out of HK$1.5M] (May 31)		<references><ref name="cryptonews-8310">[https://cryptonews.net/news/regulation/6390555/ Suspect Arrested in Hong Kong for Scamming Crypto Trader out of HK$1.5M] (May 31, 2022)</ref>

	[https://beincrypto.com/suspect-arrested-in-hong-kong-for-scamming-crypto-trader-out-of-hk1-5m/ Suspect Arrested in Hong Kong for Scamming Crypto Trader out of HK$1.5M - BeInCrypto] (Jul 2)		<ref name="beincrypto-8312">[https://beincrypto.com/suspect-arrested-in-hong-kong-for-scamming-crypto-trader-out-of-hk1-5m/ Suspect Arrested in Hong Kong for Scamming Crypto Trader out of HK$1.5M - BeInCrypto] (Jul 2, 2022)</ref>

	[https://forkast.news/headlines/hk-police-arrest-suspect-crypto-theft/ Hong Kong police arrest suspect in nearly $200,000 crypto theft] (Jul 3)		<ref name="forkastnews-8313">[https://forkast.news/headlines/hk-police-arrest-suspect-crypto-theft/ Hong Kong police arrest suspect in nearly $200,000 crypto theft] (Jul 3, 2022)</ref>

	[https://cryptosaurus.tech/suspect-arrested-in-hong-kong-for-scamming-cryptocurrency-trader-out-of-hk1-5m/ Suspect Arrested in Hong Kong for Scamming Cryptocurrency Trader Out of HK$1.5M - CryptoSaurus] (Jul 3)		<ref name="cryptosaurus-8314">[https://cryptosaurus.tech/suspect-arrested-in-hong-kong-for-scamming-cryptocurrency-trader-out-of-hk1-5m/ Suspect Arrested in Hong Kong for Scamming Cryptocurrency Trader Out of HK$1.5M - CryptoSaurus] (Jul 3, 2022)</ref>

	[https://cryptosnewss.com/suspect-arrested-in-hong-kong-for-scamming-crypto-trader-out-of-hk1-5m-beincrypto/ Suspect Arrested in Hong Kong for Scamming Crypto Trader out of HK$1.5M - BeInCrypto - Crypto News] (Jul 3)		<ref name="cryptosnewss-8315">[https://cryptosnewss.com/suspect-arrested-in-hong-kong-for-scamming-crypto-trader-out-of-hk1-5m-beincrypto/ Suspect Arrested in Hong Kong for Scamming Crypto Trader out of HK$1.5M - BeInCrypto - Crypto News] (Jul 3, 2022)</ref>

	[https://www.dimsumdaily.hk/woman-scammed-over-hk1m-worth-of-bitcoins-at-currency-exchange-shop-in-chungking-mansions/ Businessman scammed over HK$1.5m worth of Tether coins at currency exchange shop in Chungking Mansions (Updated: 11pm) - Dimsum Daily] (Jul 3)		<ref name="dimsumdaily-8316">[https://www.dimsumdaily.hk/woman-scammed-over-hk1m-worth-of-bitcoins-at-currency-exchange-shop-in-chungking-mansions/ Businessman scammed over HK$1.5m worth of Tether coins at currency exchange shop in Chungking Mansions (Updated: 11pm) - Dimsum Daily] (Jul 3, 2022)</ref>

	[https://www.facebook.com/HongKongPoliceForce/videos/416486499952181 https://www.facebook.com/HongKongPoliceForce/videos/416486499952181] (Jul 3)		<ref name="facebook-8317">[https://www.facebook.com/HongKongPoliceForce/videos/416486499952181 https://www.facebook.com/HongKongPoliceForce/videos/416486499952181] (Jul 3, 2022)</ref></references>

Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/tsimshatsuibusinessmenrobbed.php}} NoneIn Tsim Sha Tsui, a region of Hong Kong, a group of business-people were tricked out of $1.5m HKD (~$191k USD). They had previously transacted with the trader for an even larger sum without issue. They were led to a room which was full of fake equipment and made their transfer. The trader then locked the front door and headed in..."

2023-01-29T03:38:03Z

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{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/tsimshatsuibusinessmenrobbed.php}}

[[File:Tsimshatsui.jpg|thumb|None]]In Tsim Sha Tsui, a region of Hong Kong, a group of business-people were tricked out of $1.5m HKD (~$191k USD). They had previously transacted with the trader for an even larger sum without issue. They were led to a room which was full of fake equipment and made their transfer. The trader then locked the front door and headed into the other room, pretending to talk to others in the room to prepare the funds but instead leaving through a back entrance. Police were called and ultimately managed to apprehend the suspect. It is unclear if any of the funds were recovered.

This exchange or platform is based in Hong Kong, or the incident targeted people primarily in Hong Kong.

== About None ==
"A male businessman surnamed Choi (30 years old) who owns a company in Tsim Sha Tsui specialising in crypto currency trading, brought his male staff member (30 years old) and a female staff member surnamed Cheng (26 years old) to a crypto currency exchange shop in Chungking Mansions to trade Tether coins with a male buyer."

"At 1.11pm, the police received a report from a woman who said that she and her employer had met a buyer in “Super Coin” crypto currency exchange shop to trade bitcoins in the Chungking Mansions shopping mall, No. 36 to 44 Nathan Road earlier."

"It is understood that the female staff had previously traded virtual currency with the scammer, and today’s transaction was only possible due to the successful completion of the previous transaction. The two parties originally traded Tether coins worth about 4.5 million Hong Kong dollars, but this round Choi first transferred the Tether coins worth about 1.5 million Hong Kong dollars to the buyer’s account, and the whole transaction was completed before the other party paid the full amount."

"The suspect allegedly lured the victim and two colleagues into the meeting room of a shop in Tsim Sha Tsui." "The virtual currency exchange shop involved has been in business for about a month, and there was a money counter and a tablet computer with no information left in the store." "Tong said the trading location was leased by a shell company for HK$4,000 (US$509) per month in April."

"The shop’s cash register was not connected to a power outlet and the “computer” was an empty box." “Inside the shop, the banknote counter was not connected to electricity. What looked like computers were just empty cases,” said Inspector Tong Sin-tung of the Yau Tsim criminal investigation unit on Wednesday."

"[T]he victim transferred $HK1.5M (US$191,085) to an e-wallet." "The buyer later showed up, obtained the relevant virtual currency transaction link from the three people, and falsely claimed to go to the staff room of the exchange to get cash payment. He then locked the glass front door of the shop before entering the staff room."

"It is believed that someone deliberately committed the crime." "The suspect then exited the premises under the pretense that he would get cash for the victim." "The scammer claimed that when he entered the staff room to get money, he shouted “Please prepare cash in HK$1,000 banknotes!” pretending that there were other people in the staff room in order to reduce the victims’ suspicion."

"After the victim transferred the crypto to the suspect’s wallet, the suspect fled through a side door and locked the victim inside." "He falsely claimed that he needed to go to withdraw money, locked the victims in the shop and left the scene. The victims later realised that they had been deceived, and found that more than HK$1.5 million worth of crypto coins in their account had been transferred away so one of the staff members immediately called the police for help."

"The victim and her colleagues then discovered they were locked in and called the police, who tracked down the victim on Tuesday in Sham Shui Po in northern Kowloon."

"Police officers blocked the currency exchange shop involved in the case, and checked the CCTV footage of the entrance and exit of the mall to track down the whereabouts of the suspect involved. The case is temporarily handed over to the Yau Tsim Police District Criminal Investigation Team for follow-up."

"Hong Kong police announced on Tuesday the arrest of a 24-year-old who is suspected of stealing HK$1.5 million (US$191,076) in cryptocurrencies in a physical cash-to-crypto transaction." "The police labeled the rare on-site cryptocurrency theft as a serious crime punishable by 10 years in prison, if convicted." "[The] 24-year-old man was arrested by Hong Kong police Tuesday for allegedly stealing [the] funds from a Hong Kong citizen, an offense punishable by up to ten years in prison."

"Hong Kong police spokeswoman Tong Sin-tung said at a Wednesday press conference the suspect had a face-to-face cryptocurrency transaction with the victim at a business located in tourist hub Tsim Sha Tsui on May 4. "

"The police have not recovered any money but seized some of the suspect’s personal effects from the bogus shop, which had been rented under the name of a shell company."

"Tong said the police are seeking to determine if the suspect was working alone, adding that the ongoing investigation could result in further arrests."

This exchange or platform is based in Hong Kong, or the incident targeted people primarily in Hong Kong.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

* Known history of when and how the service was started.
* What problems does the company or service claim to solve?
* What marketing materials were used by the firm or business?
* Audits performed, and excerpts that may have been included.
* Business registration documents shown (fake or legitimate).
* How were people recruited to participate?
* Public warnings and announcements prior to the event.

Don't Include:
* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
* Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

== The Reality ==
This sections is included if a case involved deception or information that was unknown at the time. Examples include:

* When the service was actually started (if different than the "official story").
* Who actually ran a service and their own personal history.
* How the service was structured behind the scenes. (For example, there was no "trading bot".)
* Details of what audits reported and how vulnerabilities were missed during auditing.

== What Happened ==
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
{| class="wikitable"
|+Key Event Timeline - Tsim Sha Tsui Businessmen Robbed
!Date
!Event
!Description
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|May 3rd, 2022 11:11:00 PM
|Main Event
|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
|-
|
|
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|}

== Total Amount Lost ==
The total amount lost has been estimated at $191,000 USD.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

== Immediate Reactions ==
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

== Ultimate Outcome ==
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

== Total Amount Recovered ==
The total amount recovered is unknown.

What funds were recovered? What funds were reimbursed for those affected users?

== Ongoing Developments ==
What parts of this case are still remaining to be concluded?

== Prevention Policies ==
The simplest way to avoid this situation is to be sure that you have physical visibility of the cash prior to authorizing any irreversible payment. Performing transactions in multiple stages or using an escrow agent to temporarily hold the funds can further the safety of such transactions.

== References ==
[https://cryptonews.net/news/regulation/6390555/ Suspect Arrested in Hong Kong for Scamming Crypto Trader out of HK$1.5M] (May 31)

[https://beincrypto.com/suspect-arrested-in-hong-kong-for-scamming-crypto-trader-out-of-hk1-5m/ Suspect Arrested in Hong Kong for Scamming Crypto Trader out of HK$1.5M - BeInCrypto] (Jul 2)

[https://forkast.news/headlines/hk-police-arrest-suspect-crypto-theft/ Hong Kong police arrest suspect in nearly $200,000 crypto theft] (Jul 3)

[https://cryptosaurus.tech/suspect-arrested-in-hong-kong-for-scamming-cryptocurrency-trader-out-of-hk1-5m/ Suspect Arrested in Hong Kong for Scamming Cryptocurrency Trader Out of HK$1.5M - CryptoSaurus] (Jul 3)

[https://cryptosnewss.com/suspect-arrested-in-hong-kong-for-scamming-crypto-trader-out-of-hk1-5m-beincrypto/ Suspect Arrested in Hong Kong for Scamming Crypto Trader out of HK$1.5M - BeInCrypto - Crypto News] (Jul 3)

[https://www.dimsumdaily.hk/woman-scammed-over-hk1m-worth-of-bitcoins-at-currency-exchange-shop-in-chungking-mansions/ Businessman scammed over HK$1.5m worth of Tether coins at currency exchange shop in Chungking Mansions (Updated: 11pm) - Dimsum Daily] (Jul 3)

[https://www.facebook.com/HongKongPoliceForce/videos/416486499952181 https://www.facebook.com/HongKongPoliceForce/videos/416486499952181] (Jul 3)