Police arrest three after six Hong Kong bitcoin ATMs pilfered for HK$230,000 in first-of-its-kind crime in the city
- The suspects, said to be ‘core members’ of a larger syndicate, took advantage of unspecified ‘loopholes’ in order to withdraw cash without authorisation
- All three, aged 26 to 55, were arrested in Mong Kok over Thursday and Friday
Hong Kong police have arrested three men believed to be tied to a broader syndicate who allegedly cheated bitcoin ATMs out of nearly HK$230,000 (US$30,000), the first case of its kind in the city.
The force took action over the past two days after reports were filed by two cryptocurrency exchanges. The exchanges suspected the culprits had taken advantage of “loopholes” in the ATMs, withdrawing cash without official authorisations.
I cannot reveal what the loopholes are. But any bitcoin transaction needs verification. Maybe the ring bypassed the verifying process before taking the money
Police refused to elaborate further on precisely how the suspects had cheated the machines.
“I cannot reveal what the loopholes are. But any bitcoin transaction needs verification. Maybe the ring bypassed the verifying process before taking the money,” superintendent Wilson Tam Wai-shun of the cyber security and technology crime bureau said on Saturday.
“We have offered security advice to the two companies and believe they will upgrade their systems. It is the first time we came across fraud linked to bitcoin ATMs.”
