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Hands Handcuffs near a Mining Rig

Scammer Accused of Duping Victims of over $400,000 Arrested

Reading Time: 2 minutes by on March 2, 2019 Business, Crime, Investment, Mining, News, Regulation
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Wong Chung-kit, a Hong Kong scammer who has made over $400,000 from peddling fraudulent mining machines, has been arrested, as reported on February 28, 2019.

To the Slammer

Wong Ching-kit, a Hong Kong-based crypto entrepreneur, has been arrested for running a scam selling fraudulent crypto mining machines to his victims. He was arrested alongside a colleague by the Commercial Crime Bureau office, and while all the details have not been released, this is not his first brush with the law.

In January 2019, he was accused by several Hong Kong residents of scamming them through a false crypto mining business, from which he made an alleged $400,000.

At the time, Wong had denied any wrongdoing.

“I sell mining machines only but am treated as if I have killed people. When they make money, there is no thank you. When they lose money, they call it a scam,” he said.

Social Media Star

From all indications, social media has played a significant role in Wong’s business model, which is not uncommon for many Internet scams. Online, he goes by the name “Coin Young Master” and is known for showing off a flamboyant lifestyle, which attracted victims to his business.

He had previously been arrested for disorderly conduct in Sham Shui Po when he threw almost $800 from a high rise building for a viral video.

According to authorities, a case was filed against him in February by an investor who claimed he had lost $16,000 to Wong’s crypto mining scheme, which had been the down payment for five machines. Since December, 16 men and two women, aged 24 to 55, have approached Hong Kong law enforcement after being duped by Wong, losing an almost $400,000 combined.

One victim, who lost over $140,000, said that she had been lured through seminars that Wong had held in 2018 as well as the claims made over social media about the profitability of the so-called mining machines that he peddled.

Chief Inspector Crystal Ho Yui-kuen believes that there are more victims than those who have already come forward, saying:

“We know the company had been promoting the product in a high profile way [before April last year], so we don’t rule out the possibility that there might be more victims, or the offence took place over a longer period.”

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