Authorities recently arrested three men after allegations of fraudulent HK $ 226,000 in Bitcoin (BTC) ATMs in the region.
The arrested trio of men, aged between 26 and 55, allegedly exploited and tampered with six different Bitcoin ATMs to gain access to the Hong Kong dollar equivalent to about $ 30,000, an article in the South China Morning Post on August 15. , Suspected thieves stole money from 11 transactions.
The South China Morning Post said authorities believed the three men in question were part of a larger criminal operation.
Two cryptocurrency exchanges alerted authorities to shameful activity before the arrests. Wilson Tam, the superintendent of the Hong Kong Office of Cybersecurity and Technology Crime, did not disclose the exact methods of theft, although the office provided advice on increasing security measures for the two ATM companies in question.
“This is the first time that we have encountered Bitcoin ATM fraud,” Tam said, as reported by the South China Morning Post.
Bitcoin ATMs worldwide reached 8,000 in June 2020, while Bitcoin itself continued to gain prominence as a profitable asset as the year progressed, making the asset a logical target for attack.