Hong Kong's Crypto Scam Surge: Impersonation and Deepfakes Drain Millions

China Hong Kong authorities have confirmed a 75-year-old man fell victim to a cryptocurrency investment scam, losing HK$26.2 million (US$3.35 million) in a scheme linked to the fraudulent "National Hong Kong Coin" promotion. The incident underscores a surge in crypto-related fraud in the region, with scammers exploiting impersonation tactics and social media to deceive investors. The Hong Kong government has urged residents to remain vigilant, emphasizing that the alleged "National Hong Kong Coin" is not an official government-backed asset Hong Kong Government Exposes Sophisticated Scam Promoting Fake Cryptocurrency^[1].

The scam involved an impersonator using a fake account on X (formerly Twitter) to mimic Chief Executive John Lee Ka-Chiu, falsely claiming the government would launch an official digital currency. The account, which had previously shared content from legitimate government and public figures to build credibility, was deactivated after officials exposed the fraud. Johnny Ng, a government official, reiterated that the government has no involvement in the project and advised citizens to verify information through official channels Hong Kong Government Exposes Sophisticated Scam Promoting Fake Cryptocurrency^[1].

The scale of the fraud is not isolated. In October 2024, Hong Kong police dismantled a HK$360 million ($46.35 million) crypto investment scam run by a group operating from an office in the Hung Hom area. The operation, involving 27 individuals aged 21–34, utilized fake cryptocurrency platforms and deepfake technology to defraud victims. The group, which included local university graduates and individuals with ties to organized crime, collaborated with overseas actors to design the platforms Hong Kong Police Bust Group Running $46M Crypto Investment Scam Using Deepfakes^[2].

Scammers increasingly leverage social engineering and compromised accounts to propagate fraudulent schemes. In early 2025, a meme coin called "$IVANKA" falsely associated itself with U.S. President Donald Trump’s daughter, Ivanka Trump, who publicly disavowed the project. Similarly, Binance founder Changpeng Zhao warned of hacked accounts promoting fake tokens, including the "Artists Voyage" account, which falsely linked itself to Binance Hong Kong Government Exposes Sophisticated Scam Promoting Fake Cryptocurrency^[1].

China Hong Kong’s regulatory framework is evolving to counter such threats. The city now hosts 10 licensed crypto trading platforms, with Bullish recently securing regulatory approval. Institutional adoption is also rising, as seen in HK Asia Holdings’ February 2025 acquisition of 7.88 BTC. However, authorities face the challenge of balancing innovation with consumer protection as global crypto firms, including Deribit, explore expansion opportunities in the region Hong Kong Government Exposes Sophisticated Scam Promoting Fake Cryptocurrency^[1].

The government has reiterated that crypto-related fraud carries severe legal consequences, including fines, asset seizures, and imprisonment. With reported global crypto fraud losses reaching $3.96 billion in 2023—a 53% increase from 2022—China Hong Kong’s focus on public awareness campaigns and regulatory enforcement remains critical to maintaining trust in its growing digital asset ecosystem Hong Kong Police Bust Group Running $46M Crypto Investment Scam Using Deepfakes^[2].