The Hong Kong Securities and Futures Commission (SFC) and the Police have collaborated to issue a joint statement alerting the public to a suspected scam involving a fraudulent entity masquerading as the crypto asset trading platform “MEXC.”
Exposing the ‘MEXC’ Scam
The SFC and the Police also stated that, in this regard, both parties are working together in the exchange of intelligence via a designated task force established to trace and investigate illicit activities in relation to trading platforms of virtual assets.
The statement outlined’ the suspected modus operandi of MEXC, in which victims were lured into joining social media or messaging groups under the pretext of freely giving investment advice. Once engaged, those interested in purchasing cryptocurrencies were directed to websites purportedly operated by MEXC. However, when depositing funds into the accounts for investment in this stage, the victims face difficulties withdrawing funds.
The SFC has included MEXC and its relevant websites in the Suspicious Virtual Asset Trading Platforms Alert List, effective from February 9, 2024, as a response to the illegal activities conducted. The Police have also taken action to block access to the MEXC websites. But still, people should be on their toes as MEXC may attempt to set up new websites with the same domain names.
The SFC further alerted the public to watch out for platforms on social media and messaging apps, which were likely to have provided investment opportunities that were likely to have been too good to be true. Additionally, the public had been cautioned to watch out for platforms trying to pose as entities with the sole aim of defrauding investors.
Hong Kong’s Crypto Regulations
Moreover, Hong Kong aims to increase oversight of the cryptocurrency sector. The SFC recently instructed unregistered exchanges to apply for licenses or cease operations. So far, only two firms – HashKey and OSL – have been approved under the new framework.
Additionally, authorities proposed requiring licenses from the Commissioner of Customs and Excise for over-the-counter crypto trading platforms. This expanded oversight would include monitoring for anti-money laundering and terrorist financing compliance.
Officials urged the public to be wary of investment opportunities promoted on social media that appear too good to be true. Citizens should be vigilant about fraudulent entities impersonating legitimate, licensed businesses to deceive crypto investors.
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