Three-year-old boy victim of crypto kidnapping in Hong Kong

On July 3, a kidnapping took place in Tseung Kwan O, Hong Kong. A three-year-old boy was taken from a busy shopping mall. The kidnappers then demanded a ransom of 660,000 Tether (USDT), which is about HK$5.15 million.

Daders iron USDT

After the perpetrators kidnapped the boy, the parents were contacted with instructions to download Telegram and purchase and transfer 660,000 USDT via an over-the-counter platform. They were also warned not to contact the authorities.

Despite this, the parents contacted the Hong Kong authorities, who responded quickly and effectively. Thanks to their quick action, the boy was freed unharmed and the suspects were arrested. Although the incident ended in a fizzle, it is indicative of the rise in violent crime in Hong Kong, where there has been a 9.4% increase in organised crime this year.

The kidnappers demanded USDT, a widely used stablecoin, as ransom because USDT transactions are harder to trace than traditional bank transfers. According to a United Nations report, criminals are increasingly using digital assets to cover their tracks and hamper law enforcement investigations. Fortunately, authorities are also becoming increasingly adept in the world of crypto and blockchain technology.

Crypto popular among criminals

Earlier this year, an illegal crypto organization was busted in China’s Sichuan province. An underground crypto bank was discovered, helping clients exchange foreign currencies for USDT.

The organization also facilitated the illegal trade in medicines, cosmetics and other contraband. Authorities arrested nearly 200 people involved. In total, the organization trafficked for as much as $1.9 billion.

These two examples are just a few of the many crimes associated with crypto. The properties of crypto can be seen as a double-edged sword. While financial anonymity and privacy provide a counterbalance to an increasingly authoritarian financial system, malicious parties also benefit from these properties. This poses a dilemma for which, unfortunately, there is no solution in sight.