Hong Kong Elder Loses HK$26.2 Million in Ethereum Investment Scam

Executive Summary

A 75-year-old Hong Kong resident was defrauded of HK$26.2 million (US$3.35 million) in an Ethereum investment scam between July and September, leading to a police investigation and highlighting persistent risks in cryptocurrency markets.

The Event in Detail

A 75-year-old Hong Kong man lost approximately HK$26.2 million (US$3.35 million) to a virtual currency investment fraud. The victim was targeted by individuals posing as cryptocurrency investment experts who promised substantial returns on Ethereum investments. Over a period from July to September, the victim made 19 separate transfers, totaling the lost amount, to six different virtual accounts. The scammers subsequently became unreachable, prompting the victim to report the incident to the police on September 11. Authorities are currently investigating the case as "obtaining property by deception," with no arrests reported to date.

This incident is not isolated within Hong Kong's crypto landscape. Earlier reports detailed a similar scam where a 77-year-old man lost HK$21.8 million to an impersonation scam. Furthermore, there have been instances of fraudsters leveraging fake social media accounts, such as one mimicking Chief Executive John Lee Ka-Chiu, to promote a non-existent "National Hong Kong Coin," claiming it to be an official digital currency. Government officials, including Johnny Ng, have explicitly stated no involvement in such projects, urging citizens to verify information through official channels.

Market Implications

This case underscores the significant and evolving threat of cryptocurrency fraud, particularly for vulnerable investors. The incident could erode user trust in digital asset platforms and potentially prompt intensified public awareness campaigns or calls for stricter regulatory oversight in Hong Kong. The Hong Kong police dismantled a HK$360 million ($46.35 million) crypto investment scam in October 2024, involving 27 individuals who used fake cryptocurrency platforms and deepfake technology, indicating the scale and sophistication of these criminal operations.

The increasing prevalence of such elaborate schemes suggests a persistent challenge for market integrity and investor protection in the Web3 ecosystem. While Hong Kong has made strides in regulatory frameworks, such as enacting the Stablecoins Ordinance in August 2025 requiring fiat-backed stablecoin issuers to obtain licenses, these measures primarily focus on asset issuance and may not directly mitigate social engineering or impersonation tactics used in investment scams.

Broader Context

Globally, cryptocurrency fraud continues to be a substantial concern. Reports indicate that $14.5 billion worth of cryptocurrency was stolen globally through scams and fraud in 2024, a 23% increase from 2023. Social media platforms were linked to 53% of crypto fraud schemes in 2024. Emerging tactics include the surging use of AI-generated deepfake scams, which increased by 900% between 2023 and 2025, often impersonating crypto founders and influencers. Investment scams, promising high-yield returns, accounted for $5.5 billion globally in 2024.

The average loss per victim in cryptocurrency scams is predicted to reach $38,000 by 2025, more than double the average in 2021. While blockchain transparency can make some Web3 scams more visible, fraudsters are increasingly leveraging anonymity, deepfakes, and sophisticated social engineering to target both individuals and institutions. Regulatory bodies and law enforcement agencies worldwide are intensifying efforts, with Interpol arresting over 1,500 suspects in 2024 and various national agencies dismantling major crypto fraud networks and recovering substantial assets. Despite these efforts, the evolving nature of these scams necessitates continuous vigilance and enhanced investor education.