Authorities recently arrested three men for allegedly defrauding Hong Kong dollars 226,000 at a Bitcoin ATM in the area.
The arrested male trio, between the ages of 26 and 55, allegedly used six different Bitcoin ATMs and rigged them to pay out a Hong Kong dollar worth approximately $ 30,000, according to an Aug. 15 article in the South China Morning Post emerges. The alleged thieves withdrew money through 11 transactions.
An article in the South China Morning Post said authorities believed the three men in question were part of a larger criminal operation.
The two cryptocurrency exchanges informed the authorities of the infamous activity prior to the arrests. Wilson Tam, the head of the Hong Kong bureau for cyber security crime and technology, did not disclose the exact methods of the theft, despite the fact that the bureau had informed the two ATMs concerned of the increased security measures.
“This is the first time we have encountered a bitcoin ATM fraud,” said Tam, as reported by the South China Morning Post.
The number of Bitcoin ATMs worldwide reached 8,000 in June 2020, while Bitcoin itself gained more prominence as a profitable commodity during the year, making the commodity a logical target for attack.