3 arrested in Hong Kong for bitcoin theft

Hong Kong authorities have arrested three people in connection with six Bitcoin ATM robberies after two cryptocurrency exchanges submitted funds for illegal withdrawals.

6 Unauthorized Bitcoin ATMs

Hong Kong Police’s Cyber ​​Security and Technology Crime Bureau arrested three suspects after two cryptocurrency exchanges filed reports that funds were taken from six unauthorized Bitcoin ATMs, media reported on Saturday.

Police said the suspects were allegedly core members of a larger group. The thefts and arrests took place on Thursday and Friday in Mong Kok, Kowloon, Hong Kong.

The media said: The report submitted by the exchange suspected that the criminals had exploited a "loophole" in the Bitcoin ATM machine, allowing them to withdraw cash without authorization. They withdrew 230,000 Hong Kong dollars (about 206,074 yuan) in 11 transactions. The largest amount was 54,000 Hong Kong dollars.

Tam Wai-ming, director of the Hong Kong Police Cyber ​​Security and Technology Crime Bureau, did not elaborate on how the suspects used the loopholes to steal. He said: We have provided security advice to the two companies and assisted them in upgrading their systems. This is also the first Bitcoin ATM-related theft case we have handled.

According to the cryptocurrency ATM tracking website Coinatmradar, there are currently 56 Bitcoin ATMs in Hong Kong. Globally, the number of crypto ATMs has been growing steadily, and the number worldwide has now exceeded 9,000.

Most of the Bitcoin ATMs in Hong Kong are operated by Coinhere, and it is the second most popular operator of Bitcoin ATMs in Hong Kong. According to its website, the Hong Kong Bitcoin ATM, located in Mong Kok, Hong Kong, currently has five Bitcoin ATMs in Hong Kong. Coinatmradar also has a brand specifically for Mong Kok, the W Plaza machine operated by the Nitroswap company.

The Hong Kong Monetary Authority considers Bitcoin to be a virtual commodity. Hong Kong's Securities and Futures Commission announced a new regulatory framework in November last year that allows for the issuance of licenses and supervision for cryptocurrency exchanges. (NetEase News)