The post Alleged $15.4M scam by Hounax sends Hong Kong authorities scrambling appeared on BitcoinEthereumNews.com.

Hong Kong police have initiated investigations into the cryptocurrency trading platform Hounax following reports from 131 individuals who claim to have lost HK$120 million ($15.4 million) in an alleged scam. The local authorities, responding promptly, have assured the public of their commitment to the investigation, vowing to make arrests soon. Alleged scam targets a wide range of victims The alleged victims, ranging from 19 to 78 years old, include a 69-year-old retired woman who reportedly lost HK$12 million to the scheme. The scam, orchestrated through the Hounax platform, attracted investors with promises of profitable returns on their cryptocurrency investments. However, when individuals attempted to withdraw their funds, they found themselves unable to do so, raising suspicions and prompting the subsequent investigation. Earlier this month, Hong Kong’s Securities and Futures Commission (SFC) labeled Hounax as a suspicious virtual asset trading platform. The SFC, in a statement on its website, highlighted discrepancies in Hounax’s claims of collaboration with a financial institution and a venture capital firm. It emphasized that such partnerships did not exist, revealing that the company appeared to target Hong Kong investors with misleading information on its user log-in page and social media channels. In light of these incidents, Hong Kong lawmaker Johnny Ng has urged the SFC to take a more proactive role in identifying and contacting unlicensed crypto trading platforms. Ng emphasized the importance of early intervention to prevent risks and protect investors from falling prey to fraudulent schemes. JPEX investigation continues The investigation into Hounax follows the authorities’ previous probes into another crypto trading platform, JPEX. As of the latest update, the police have received reports from 2,623 victims, involving approximately HK$1.6 billion in the JPEX case. In September, the police made 66 arrests in connection with the JPEX investigation. This wave of crypto-related scams is not…

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Filed under: News - @ November 27, 2023 4:16 pm