Massive $18.9 Million Crypto Scam Hits Hong Kong, 145 Victims Reported 👀
In a significant setback for the Hong Kong cryptocurrency community, the unlicensed crypto exchange Hounax has perpetrated a fraudulent scheme, resulting in losses totaling 148 million Hong Kong dollars (equivalent to $18.9 million) for 145 users. The revelations surfaced during a press conference held by local police on November 25th, shedding light on the nefarious activities of Hounax.
As of November 27th, the Securities and Futures Commission (SFC) of Hong Kong has received 18 complaints concerning the illicit practices of the crypto exchange. Individual losses, reported in 10 million Hong Kong dollars ($1.2 million) for some, underscore the severity of the situation, with Hounax masquerading as a licensed platform claiming cooperation with legitimate financial institutions.
Despite the SFC's identification of Hounax as a suspicious platform on November 1st, the exchange managed to attract local customers through deceptive claims, including affiliations with Coinbase's original technical team, possession of a Canadian license, and potential investments from prominent firms like Sequoia Capital and IDG Capital.
Chief Inspector Ke Yongn of the Commercial Crime Investigation Section of the Hong Kong Police highlighted Hounax's extensive use of social media for its operations. As of the latest information, Hounax's official Facebook page has been deactivated.
In a broader context, Hounax joins a list of nine suspicious crypto investment platforms identified by the SFC, including JPEX, Hong Kong Digital Research Institute, BitCuped, FUBT, futubit/futu-pro, EFSPD, OSL trading, and arrano.network.
This incident draws parallels with the previous JPEX exchange scandal in Hong Kong, which involved over 2,000 complaints and a reported loss of approximately $180 million, leading to the arrest of 66 individuals.
The Hounax scam underscores growing concerns surrounding cryptocurrency exchanges in Hong Kong.
