Reading Time: 2 minutesThe team behind the exchange Hounax has made away with over $18 million according to Hong Kong authorities
The authorities said the exchange was operating in the country without a license
Hong Kong’s securities regulator had warned citizens against interacting with the platform

Hong Kong citizens have lost over $18 million in the Hounax crypto exchange scam despite being warned by the country’s securities watchdog against interacting with the platform. The exchange managed to nab more victims by claiming it had the blessings of the Hong Kong Securities and Futures Commission (SFC). Hounax has already deactivated some of its social media accounts, a common move with scams in the crypto and blockchain world.

Hounax Exchange Listed as Suspicious

Apart from lying about its regulatory status, the exchange also claimed to have links with leading crypto exchanges like Coinbase and venture capital firms such as Sequoia Capital.

The SFC had listed it under suspicious crypto platforms at the beginning of this month, with the local police disclosing that it had received complaints from 145 victims as of November 27. The police estimate the total amount lost to be over $18 million.

According to authorities, the platform ran an investment scam where users were expected to deposit cryptocurrency and earn interest on their funds. The platform had an active website and mobile app to ease the process of investing and tracking profits. Unfortunately, the website and app weren’t working when users wanted to withdraw their funds.

The Hounax exchange scam comes months after the explosion of the JPEX exchange scam which siphoned over $190 million from victims. Taiwanese police have however arrested key individuals linked to the JPEX scandal.

Pig Butchering Scam also a Menace

The Hounax scam comes two months after Hong Kong authorities announced plans to prevent the return of a JPEX-like criminal enterprise.

In the United States, financial and law enforcement agencies are dealing with pig butchering scams, with the Department of Justice, Tether and OKX working together to freeze over $200 million linked to such scams.

With another JPEX-style scam happening in Hong Kong, it’s to be seen whether the country’s authorities will tighten the rules governing crypto operators within its borders.

 

The post $18 Million Lost in Hounax Exchange Scam appeared first on FullyCrypto.

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Filed under: Bitcoin - @ November 29, 2023 11:22 am