Hong Kong authorities have arrested three employees of a cryptocurrency exchange shop on suspicion of fraud. The arrest followed a report from a customer who claimed he was unable to retrieve cash after selling HK$1 million worth of Tether (USDT) at the shop. The suspects allegedly used "hell banknotes", used in traditional Chinese rituals, to deceive the victim into transferring the USDT to their cryptocurrency wallet.

The suspects failed to fulfill their agreement, leaving the victim without his cash. In Hong Kong, fraud can lead to a penalty of up to 14 years imprisonment. Authorities have urged residents to exercise caution when conducting transactions and to opt for reputable cryptocurrency exchange shops to prevent falling victim to such scams.

This incident is part of a growing trend of crypto scams in Hong Kong. Recently, three teenagers were arrested and a 19-year-old was rescued after being lured into a crypto trading scam. In another case, a housewife lost HK$7.1 million ($908,000) after being duped into investing in cryptos via a scam platform on Instagram.