Residents lose HKD20.1 million in cryptocurrency scam

Over 70 local residents were involved in an alleged cryptocurrency scam, where they invested a total of over HKD20.1 million, following promises they will receive a monthly return of 25 percent.

The alleged fraud case purportedly began in January, when Hong Kong IT and eSports company Forger Esports (which entered the cryptocurrency business in late 2017) kicked off its series of seminars at the Macau Civil Servants Association (ATFPM).

Chairman of ATFPM Rita Santos and her son Frederico dos Santos Rosário were involved in the case.

In a social media post, Rosário explained that they were introduced to Dennis Lau in June 2017, who is the manager of Forger eSports, and also a shareholder of the company.

“On the strength of Lau’s representations and the promotional materials, no less than 70 residents or workers in Macau […] participated in the schemes,” Rosário stated.

“The participants have remitted altogether HKD20,106,081 to bank accounts in Hong Kong designated by Lau,” he added.

He then stated that participants had only managed to recover over HKD6.3 million and had not received any further shares by June.

However, according to company statements, the payments were suspended as authorities froze the accounts without providing further details.

The company noted that contracts being “deliberately modified by certain individuals” were the basis for the freezing.

Speaking to TDM, another investor said that it was both Santos and Rosário who promoted the investment scheme in the region.

The investor, who declined to be identified, recalled that Rosário had also given a presentation about the development of eSports and his business in Hong Kong which is related to cryptocurrency mining services.

They also said that they were encouraged by Santos to join the business, noting that “they were telling people to invest.”

Lau claims to have been the one who was deceived, as he accused Rosário of altering the contract provided to investors. Apple Daily reported Lau claimed that Rosário changed the return of investment from 25 percent per year to 25 percent per month.

The victim who spoke to a local state media outlet believed that Rosário should be held responsible for the alleged scam.

Fourteen people have called the local authorities for assistance, while 10 reported to Hong Kong police stations.