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145 Users with $18.9 Million Loss in Hong Kong
Hong
Kong authorities reported that 145 users fell victim to a scam orchestrated by
the unlicensed cryptocurrency exchange Hounax. It has resulted in a loss of 148
million HKD ($18.9 million), as reported by local media Shenzhen Commercial
News on November 27. During an initial press conference on November 25, local
police informed the public about the reports regarding Hounax.
The
Hong Kong Securities Regulatory Commission (SFC) disclosed that, as of yesterday
(Monday), they had received 18 complaints about the exchange, ranging from
amounts of 12,000 HKD to 10 million HKD. Despite claiming to be a licensed
platform in collaboration with legal financial institutions, Hounax was listed
by the SFC as a suspicious platform earlier, with a warning about the
associated risks.
The
platform allegedly attracted local customers by falsely asserting it was
founded by the original Coinbase technical team, possessed a license from
Canadian authorities, and was exploring investments from entities like Sequoia
Capital and IDG Capital.
Chief
Inspector Ke Yongn of the Commercial Crime Investigation Section of the Hong
Kong Police stated that Hounax also used social media to lure victims. However,
the official Facebook page of the platform is reportedly no longer online. The
SFC has identified nine suspicious crypto investment platforms, including
Hounax, JPEX, Hong Kong Digital Research Institute, BitCuped, FUBT,
futubit/futu-pro, EFSPD, OSL trading, and arrano.network.
This
incident followed a major scandal involving the JPEX
exchange in Hong Kong earlier this year, where over 2,000 complaints were received,
resulting in approximately $180 million in losses. So far, 66 individuals have
been arrested in connection to the JPEX scandal. These events have prompted
local regulators in Hong Kong to enhance crypto regulation to prevent further
industry catastrophes. However, regulators have affirmed that the country’s
one-year grace period for crypto exchanges will remain unchanged.
🇭🇰 Hounax Exchange Scam Shakes Hong Kong: Investors Demand Justice 🇭🇰
Hong Kong has been rattled by another cryptocurrency exchange scandal, this time involving Hounax, leaving investors counting their losses and demanding justice.https://t.co/4AYg24jkJL pic.twitter.com/h4CZsCTsOW
— Blockhead (@blockhead_co) November 28, 2023
Joint
Working Group Formed for Hong Kong’s Crypto Sector
Finance Magnates reported that in a joint effort
to strengthen vigilance and enforcement against illegal activities within
Virtual Asset Trading Platforms (VATPs), the SFC has established a working group in collaboration with the Hong
Kong Police Force (HKPF).
Following
a high-level meeting on September 28, 2023, the working group comprised
representatives from the HKPF’s Commercial Crime Bureau, Cyber Security and
Technology Crime Bureau, Financial Intelligence and Investigations Bureau, as
well as the SFC’s Enforcement Division and Intermediaries Division. This
partnership aims to enhance vigilance and enforcement in the virtual asset
trading sector.
The
key objectives of the working group include facilitating information sharing
related to suspicious activities and breaches associated with VATPs,
implementing a mechanism for risk assessment, and improving coordination in
investigations linked to virtual asset trading platforms.
Eve
Chung, the Assistant Commissioner of Police, highlighted the significance of
this collaboration in responding to challenges arising from VATPs to better
protect the general public of Hong Kong. This partnership signifies a step
forward in combating illicit activities in the virtual asset trading sector.
Hong
Kong authorities reported that 145 users fell victim to a scam orchestrated by
the unlicensed cryptocurrency exchange Hounax. It has resulted in a loss of 148
million HKD ($18.9 million), as reported by local media Shenzhen Commercial
News on November 27. During an initial press conference on November 25, local
police informed the public about the reports regarding Hounax.
The
Hong Kong Securities Regulatory Commission (SFC) disclosed that, as of yesterday
(Monday), they had received 18 complaints about the exchange, ranging from
amounts of 12,000 HKD to 10 million HKD. Despite claiming to be a licensed
platform in collaboration with legal financial institutions, Hounax was listed
by the SFC as a suspicious platform earlier, with a warning about the
associated risks.
The
platform allegedly attracted local customers by falsely asserting it was
founded by the original Coinbase technical team, possessed a license from
Canadian authorities, and was exploring investments from entities like Sequoia
Capital and IDG Capital.
Chief
Inspector Ke Yongn of the Commercial Crime Investigation Section of the Hong
Kong Police stated that Hounax also used social media to lure victims. However,
the official Facebook page of the platform is reportedly no longer online. The
SFC has identified nine suspicious crypto investment platforms, including
Hounax, JPEX, Hong Kong Digital Research Institute, BitCuped, FUBT,
futubit/futu-pro, EFSPD, OSL trading, and arrano.network.
This
incident followed a major scandal involving the JPEX
exchange in Hong Kong earlier this year, where over 2,000 complaints were received,
resulting in approximately $180 million in losses. So far, 66 individuals have
been arrested in connection to the JPEX scandal. These events have prompted
local regulators in Hong Kong to enhance crypto regulation to prevent further
industry catastrophes. However, regulators have affirmed that the country’s
one-year grace period for crypto exchanges will remain unchanged.
🇭🇰 Hounax Exchange Scam Shakes Hong Kong: Investors Demand Justice 🇭🇰
Hong Kong has been rattled by another cryptocurrency exchange scandal, this time involving Hounax, leaving investors counting their losses and demanding justice.https://t.co/4AYg24jkJL pic.twitter.com/h4CZsCTsOW
— Blockhead (@blockhead_co) November 28, 2023
Joint
Working Group Formed for Hong Kong’s Crypto Sector
Finance Magnates reported that in a joint effort
to strengthen vigilance and enforcement against illegal activities within
Virtual Asset Trading Platforms (VATPs), the SFC has established a working group in collaboration with the Hong
Kong Police Force (HKPF).
Following
a high-level meeting on September 28, 2023, the working group comprised
representatives from the HKPF’s Commercial Crime Bureau, Cyber Security and
Technology Crime Bureau, Financial Intelligence and Investigations Bureau, as
well as the SFC’s Enforcement Division and Intermediaries Division. This
partnership aims to enhance vigilance and enforcement in the virtual asset
trading sector.
The
key objectives of the working group include facilitating information sharing
related to suspicious activities and breaches associated with VATPs,
implementing a mechanism for risk assessment, and improving coordination in
investigations linked to virtual asset trading platforms.
Eve
Chung, the Assistant Commissioner of Police, highlighted the significance of
this collaboration in responding to challenges arising from VATPs to better
protect the general public of Hong Kong. This partnership signifies a step
forward in combating illicit activities in the virtual asset trading sector.
#Users #Million #Loss #Hong #Kong
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