Hong Kong’s SFC warns of MEXC related suspected crypto fraud

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Hong Kong’s Securities and Futures Fee (SFC) has warned of an alleged rip-off involving crypto alternate MEXC.

In line with the SFC, on Feb. 9, police alerted the general public to an alleged rip-off involving a company posing as a digital asset buying and selling platform (VATP) and working beneath the identify MEXC.

The SFC has additionally included MEXC and its web sites in its alert record for suspicious digital asset buying and selling platforms. Police took motion to dam MEXC web sites.

The SFC and the police are actually sharing intelligence on the case as a part of a joint working group that screens and investigates unlawful VAT exercise.

The regulator suspects MEXC lured victims to affix social media or prompt messaging discussion groups beneath the guise of offering free funding recommendation.

“On these discussion groups, victims concerned with shopping for cryptocurrencies had been referred to web sites operated by MEXC. Victims had been then requested to deposit funds into designated financial institution accounts for funding functions, however after that, they reported difficulties with fund withdrawal.”

SFC assertion

Hong Kong’s SFC beforehand warned unregistered cryptocurrency exchanges to use for licenses by Feb. 29 or shut by Could 31.

Hong Kong initiated a cryptocurrency licensing framework for digital asset buying and selling platforms final yr, paving the best way for licensed exchanges providing retail buying and selling providers. At the moment, the city-state has licensed two platforms together with HashKey and OSL. Nevertheless, the SFC fastidiously examined purposes from 14 crypto corporations.

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