Hong Kong Teens Jailed After HKD 2M USDT Exchange Scam Case
- Hong Kong court sends two teens to reformatory over HKD 2 million USDT scam case.
- The victim lost HKD 2 million in cash in the Tsim Sha Tsui exchange after a USDT transfer failed.
- Court said the hidden safe passage enabled theft, showing coordination in the Hong Kong crypto scam.
A Hong Kong court has sentenced two teenagers to a reformatory for their role in a USDT scam involving HKD 2 million. The case stemmed from a failed cryptocurrency exchange at a Tsim Sha Tsui money changer. The victim handed over cash to buy Tether but never received the tokens. Investigators later uncovered a concealed escape route linked to the fraud.
According to a report, both defendants were 18 years old at the time of the offence. They pleaded guilty to fraud and accepted their involvement in the case. The court said the offence showed clear coordination and planning.
Cash for USDT Deal Collapses at Tsim Sha Tsui Exchange
The incident occurred in November last year. A man arranged to purchase more than HKD 2 million worth of USDT. He contacted a person surnamed Li to set up the exchange. The meeting was scheduled at a money exchange shop in Tsim Sha Tsui.
On the day of the transaction, the victim arrived with HKD 2 million in cash. He followed the instructions given at the shop. The two defendants asked him to place the money inside a safe on the premises. The victim complied and waited for the USDT transfer.
The digital assets never arrived. The victim repeatedly asked about the status of the transaction. When no USDT was delivered, he demanded his money back. Staff at the shop then claimed the cash was missing.
A dispute followed inside the store. During the confrontation, the victim discovered something unusual about the safe. It contained a hidden passageway connected to a neighbouring shop. The court later found that the design made it possible to remove cash without detection.
The two defendants attempted to flee using the concealed passage. Their escape was unsuccessful. Police were called to the scene shortly after. Both teenagers were arrested and taken into custody.
Prosecutors said the physical setup of the safe was central to the scam. The barrier between the money exchange and the adjacent shop was minimal. Judge Cheng said the arrangement allowed cash to be withdrawn easily. He ruled that the defendants acted together and with intent.
The court identified the defendants as Liang Jinwei and Guo Zijun. Liang was unemployed at the time of the offence. Guo worked as a junior air-conditioning repair technician. Both were 18 years old when the fraud took place.
During mitigation, the defence argued that neither teenager planned the scheme. The court accepted they were not the organisers. Judge Cheng said their involvement was still essential. He described them as “pawns” who played an indispensable role in executing the scam.
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Court Weighs HKD 2 Million Loss in Sentencing Decision
The amount involved weighed heavily in sentencing. Judge Cheng said HKD 2 million was a very large sum. He added that the coordinated actions showed clear premeditation. The seriousness of the offence could not be ignored.
The court then turned to sentencing options. Both defendants were young offenders. They had no prior fraud convictions. Judge Cheng said rehabilitation should take priority over immediate imprisonment.
Liang had a previous conviction for drug possession. He committed the offence while on bail in that case. The court noted that he completed vocational training while in custody. Guo told the court he found the job through a Facebook listing and expressed remorse.
A reformatory report was submitted to the court. It recommended placement in a correctional facility rather than prison. Judge Cheng said direct imprisonment would conflict with Section 109 of the Criminal Procedure Ordinance. He ruled that a reformatory sentence better served the public interest.
The case has renewed attention on crypto-related scams in Hong Kong. Authorities have repeatedly warned about cash-based USDT transactions. Officials continue to urge the public to use caution when dealing with large cryptocurrency exchanges conducted in person.
