Today, the Securities and Futures Commission of Hong Kong issued a public warning regarding an alleged fraudulent crypto exchange. The SFC, in a statement posted on its website, highlighted that an entity named MEXC was falsely representing itself as a legitimate cryptocurrency exchange.
The cryptocurrency fraud associated with MEXC.
MEXC’s alleged crypto fraud involved enticing victims through social media or chat groups with promises of free investment advice. Victims were then directed to MEXC-operated websites to purchase cryptocurrencies and deposit funds into designated bank accounts for investment. However, difficulties arose when attempting to withdraw funds. As a result of suspicions surrounding virtual asset trading platforms, MEXC and its websites have been added to the SFC’s alert list, with the Hong Kong police taking action to restrict access to MEXC websites. The SFC and police are currently working together to share intelligence and investigate illegal virtual asset trading activities.
“The SFC reiterates its warning for the public to exercise caution regarding investment opportunities and advice that seem too good to be true, whether encountered on social media platforms or through instant messaging applications,” stated the regulator in its announcement. “Furthermore, it’s important for individuals to recognize that fraudulent and unlicensed platforms frequently use names resembling legitimate entities, aiming to deceive investors.”
The Securities and Futures Commission of Hong Kong
Last week, the SFC issued a warning to unregistered cryptocurrency exchanges, setting a deadline for them to apply for licenses by February 29 or cease operations by May 31. This move follows Hong Kong’s introduction of a regulatory framework for licensing cryptocurrency exchanges dealing with virtual assets the previous year, which enabled the licensing of exchanges offering retail trading services. Currently, Hong Kong has granted licenses to two platforms, HashKey and OSL. Furthermore, authorities in Hong Kong initiated a public consultation on legislative proposals aimed at implementing a licensing regime for providers of over-the-counter virtual asset trading services.
