April 25, 2025

By Anjali Kochhar

A massive cryptocurrency scam ring operating out of Hong Kong has been busted by local authorities, revealing the use of deepfake technology and romantic manipulation to defraud unsuspecting victims across Asia. The operation led to the arrest of 27 individuals and the seizure of over HK$360 million (approximately USD 46 million) in assets.

The scam, which had been running since October 2023, was headquartered in a high-rise office in Hung Hom. Authorities revealed that the fraudsters used AI-generated deepfake videos to impersonate attractive women, forming fake online relationships with victims from mainland China, Taiwan, India, Singapore, and other regions. Once emotional trust was built, victims were lured into investing in fake cryptocurrency platforms with promises of high returns.

These victims later discovered they were unable to withdraw their funds typical of a classic romance-based crypto fraud. Police believe hundreds of people may have been affected. What made this scam especially notable was its professional setup, which included designated roles like “relationship managers,” “technical support,” and “accountants.” Some of those arrested were university graduates in digital media, and there are suspicions of links to local triads.

During the operation, police seized over 100 smartphones and computers, luxury watches, large sums of cash, and even training manuals for the scam. Superintendent Yiu Wing-kin described the scheme as one of the most organised and large-scale crypto scams seen physically operating within Hong Kong.

This case reflects the dangerous intersection of emerging technologies like AI and deepfakes with financial fraud, highlighting a growing challenge for law enforcement worldwide. As technology advances, the sophistication of scams continues to rise, making digital literacy and public awareness more critical than ever.

Authorities are now urging the public to remain cautious when interacting with unknown individuals online and to verify all investment opportunities before parting with any money.

About the author

Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.