Massive $18.9 Million Crypto Scam Hits Hong Kong Residents
Key Takeaways
- Hounax defrauded 145 users in Hong Kong, causing losses of $18.9 million.
- The platform joins a list of nine suspicious cryptocurrency platforms designated by the SFC for falsely claiming legitimacy and using social media for recruitment.
- These scams are part of a growing trend of cryptocurrency fraud in Hong Kong, which has led to stricter regulation of the sector.
The Hong Kong cryptocurrency community is facing serious challenges due to unlicensed cryptocurrency exchanges. Hounax defrauded 145 users.causing Total losses: HK$148 million (equivalent to US$18.9 million).
This fact was revealed through a press conference held by local police on November 25, which brought Hunax’s evil actions to the forefront.
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As of November 27, the Hong Kong Securities and Futures Commission (SFC) 18 complaints were registered. Individuals in relation to cryptocurrency exchanges Losses range from 12,000 HKD ($1,539) up to 10 million HKD ($1.2 million)..
One gets the impression that Hounax is a licensed platform; Claims to cooperate with legitimate financial institutions. However, on November 1, the SFC identified it as a suspicious platform and warned users of the risks.
Nonetheless, Hounax has been successful in attracting local customers by: Fraudulent claim to be founded by Coinbase’s original technology team, have a Canadian licenseand Potential investment from major companies such as Sequoia Capital and IDG Capital.
Inspector Ke Yongn of the Hong Kong Police Commercial Crime Investigation Department noted: The platform has made extensive use of social media for its operations.. At the time of writing, Hounax’s official Facebook page has been deactivated..
In a broader context, Hounax is now Part of a list of 9 questionable cryptocurrency investment platforms Identified by SFC include JPEX, Hong Kong Digital Institute, BitCuped, FUBT, futubit/futu-pro, EFSPD, OSL Exchange and arrano.network.
The incident is reminiscent of Hong Kong’s earlier JPEX exchange scandal, which resulted in more than 2,000 complaints and reported losses of about $180 million. In this case, 66 people were arrested.
Hounax scam highlights: Growing concerns over Hong Kong cryptocurrency exchange. In response, local regulators Strengthen cryptocurrency regulations to prevent further industrial accidents.. Despite these challenges, authorities confirmed that the one-year grace period for domestic cryptocurrency exchanges will continue as planned.
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