Hong Kong's Securities and Futures Commission (#sfc ) has issued a warning on seven entities suspected of being involved in cryptocurrency scams, highlighting the risks investors face in the city's fast-growing digital asset market.
According to the official notice, these organizations operated under names such as XTCQT, CEG, BTEPRO, Bitones.org, Yomaex Crypto Market Limited (Yomaex), Bstor (Bstorest) and Taurusemex.
Notably, Hong Kong, a major crypto hub in Asia, has attracted both genuine investors and scammers. According to the SFC warning, these platforms claim to offer services related to cryptocurrency trading. Some even use social media and messaging platforms to lure investors to their websites and get them to sign up.
Once users register and start trading, a real scam pops up. They try to withdraw funds, but receive one warning or another. In some cases, these organizations accuse the investor's account of money laundering or some illegal activity and then deactivate the account. Panic-stricken investors are then forced to pay a huge amount in the name of “taxes” for activating the account and withdrawing funds.
Notably, Taurusemex misled investors by claiming that their accounts were registered with the SFC to inflate a sense of false legitimacy for their operations.
The SFC urged the public to be wary of online investment opportunities, adding:
“The public should be wary of too-good-to-be-true investment opportunities and advice posted on social media and instant messaging applications. Investors should remain vigilant and watch out for scams when making investment decisions.”
Local police took action against these organizations and blocked their websites. The SFC has previously issued similar warnings against various suspicious entities, including Hong Kong#DAO and BitCuped.
Cryptocurrency scams have become increasingly common in Hong Kong in recent years. Last year, regional police arrested six people, including an online influencer named Joseph Lam, in connection with a cryptocurrency scam involving #JPEX . The fraud resulted in more than $127.8 million in losses in digital assets.#binance #Web3 $BNB
