The Securities and Futures Fee (SFC) of Hong Kong has expediently blacklisted and restricted entry to 2 cryptocurrency web sites, HongKongDAO and BitCuped, following suspicions of fraudulent actions. SFC’s Director of Enforcement, Damon Cheng Tak-ka, unveiled the decisive measures, emphasizing the need to curb the unfold of false info by these platforms.
HongKongDAO, flagged by the SFC after a tip-off, purportedly offered a digital token named “HKD” and falsely claimed to have utilized for working licenses with each the SFC and the federal government. Cheng clarified that these assertions have been baseless, resulting in the SFC inserting the web site on its alert record on November 24. Cooperation with the police enabled the SFC to instruct web service suppliers to dam HongKongDAO’s web site and difficulty stop and desist letters to buying and selling platforms dealing with tokens from the flagged website.
HongKongDAO was discovered to function discussion groups, one in Chinese language with over 10,000 members and one other in English with greater than 1,700 people. The platform touted the HKD token, misleadingly presenting it as possessing a excessive market worth to draw traders. Upon making an attempt to buy the token, customers have been redirected to a different website for cost, indicating misleading practices.
BitCuped, the second blacklisted website, was discovered to have falsely listed the chairman and CEO of Hong Kong Exchanges and Clearing (HKEX) as its personal. Keith Choy Chung-fai, the SFC’s interim head of intermediaries, expressed concern a few potential development the place scammers misuse the names of well-known figures to deceive traders.
Regardless of the continuing police investigation, the SFC didn’t disclose the variety of victims or the financial losses related to the 2 websites. Keith Choy Chung-fai issued a warning to the general public, advising warning towards befriending strangers on-line, particularly on platforms like Fb, WeChat, WhatsApp, Telegram, and Tinder, the place scammers typically impersonate funding consultants or engaging people to lure victims.
This decisive motion by the SFC follows latest criticism of the watchdog’s response to the Hounax cryptocurrency platform case in late November. The SFC clarified that its authority to intervene was restricted as Hounax operated with out regulation or an SFC license. The incident raised issues about potential monetary fraud, prompting the SFC to handle rising threats swiftly.
The SFC’s proactive stance goals to guard traders within the evolving panorama of cryptocurrency-related scams and underscores the significance of vigilance within the digital realm.
