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Hong Kong authorities arrested three people in connection with robberies of six bitcoin ATMs after two cryptocurrency exchanges reported that funds were being illegally withdrawn from them.
6 Bitcoin ATMs targeted
Hong Kong Police Force Cyber Security and Technology Crime Bureau arrested three people after two cryptocurrency exchanges complained that funds had been withdrawn from six bitcoin ATMs without authorization, South China Morning reported Saturday. Post.
The suspects are allegedly main members of a larger union, police say. The robberies and arrests took place over two days, Thursday and Friday, in Mong Kok, Kowloon district of Hong Kong.
The exchanges that filed the reports suspected that the culprits had taken advantage of the “loopholes” in the bitcoin ATMs that allowed them to withdraw cash without requiring authorization, the publication reads. They withdrew 230,000 Hong Kong dollars (about $ 30,000) in 11 transactions from the machines. The largest amount withdrawn from a single machine was 54,000 Hong Kong dollars.
Superintendent Wilson Tam with the Hong Kong Police Information Security and Technology Crime Bureau did not explain how the suspects tricked the cars or what the loopholes were. “We have offered safety advice to the two companies and we believe they will upgrade their systems. This is the first time we have come across fraud related to bitcoin ATMs. “
According to cryptocurrency ATM monitoring site Coinatmradar, Hong Kong currently has 56 bitcoin ATMs. Worldwide, the number of crypto ATMs has grown steadily, recently surpassing 9,000 machines globally.
Most bitcoin ATMs in Hong Kong are operated by Coinhere, with HK Bitcoin ATM being the second most popular operator. Founded in Mong Kok, HK Bitcoin ATM currently has five bitcoin ATM locations in Hong Kong, according to its website. Coinatmradar also has a specific listing for Mong Kok, a machine at W Plaza operated by Nitroswap Ltd.
The Hong Kong Monetary Authority considers bitcoin a virtual commodity. The country’s Securities and Futures Commission announced a new regulatory framework in November last year that allows opt-in cryptocurrency exchanges to be licensed and regulated.
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