- About 20 clients reported 2.67M $USDT missing from accounts starting in early January.
- Internal logs tied a 34-year-old engineer to database checks of client accounts.
- Police arrested the employee, and Yau Tsim Team 9 now pursues the full theft inquiry.
A cryptocurrency investment company in Tsim Sha Tsui reported that about 20 clients lost $USDT worth HK$20.87 million earlier this year, prompting police to arrest a company employee on suspicion of theft. The losses involved roughly 2.67 million $USDT and occurred at a firm operating a cryptocurrency settlement platform in the South Tower of Hong Kong Plaza on Science Museum Road.
After the company manager reviewed internal records and contacted police, officers arrested a 34-year-old network engineer surnamed Cai following an investigation. Could insider access pose one of the greatest risks to clients using third-party cryptocurrency platforms?
Discovery of Client Losses and Internal Review
The company began receiving complaints in early January after clients noticed missing $USDT from their accounts held on the settlement platform. Around 20 clients reported losses, totaling approximately HK$20.87 million, according to information provided to police. In response, company management conducted an internal review of database activity linked to client account access.
The review showed that Cai, a network engineer, logged into the company database and checked multiple client accounts. Records indicated that Cai had served the company for four years and mainly managed mobile application systems used by clients.
After identifying the access activity, the company manager reported the matter to the police for further investigation. Police confirmed they received the report from the firm and began examining digital records and account logs.
Officers focused on how the employee accessed sensitive data and whether unauthorized transfers occurred. The findings led investigators to identify Cai as a suspect connected to the reported $USDT losses.
Arrest and Ongoing Police Investigation
Police arrested Cai on suspicion of theft yesterday afternoon following initial inquiries. The case was transferred to the Yau Tsim District Criminal Investigation Team 9 for further handling.
Investigators continued examining electronic devices and internal systems linked to the alleged activity. A reporter from Sing Tao Daily visited the company office yesterday afternoon and observed several police officers at the scene.
Some officers examined computers inside the premises, which suggested active evidence collection during the visit. Police did not release details on recovered assets or potential charges beyond the theft allegation. Authorities confirmed that the investigation remains active as officers trace account access and transaction records. The police investigation seeks to identify all lost assets while tracking any potential fund transfers.
No court date or further enforcement actions have been announced at this stage.
Related: Hong Kong Grants VDX Virtual Asset License as Victory Fintech Joins SFC List
Pattern of Cryptocurrency-Related Crimes
Cryptocurrency-related crime cases have appeared frequently in recent years across Hong Kong. On August 25 last year, Central District Police received a report from a 77-year-old woman involving a stablecoin purchase scam.
She brought HK$3 million in cash to a Sheung Wan exchange on Jicili Street to buy stablecoins. Two male employees led her inside the shop and counted the cash before placing it into a concealed floor safe.
The employees later left the shop under various excuses and removed cash from behind the fake safe. When her e-wallet received only about HK$78,000 in stablecoins, she suspected fraud and contacted the police.
Police later arrested three people between August 26 and 28 on suspicion of obtaining property by deception and handling stolen goods. Investigators reported that some suspects had links to triad backgrounds and rented the shop involved. The victim’s total loss reached about HK$2.92 million, based on police findings.
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