Hong Kong Police Investigate Hounax Scam
Police in Hong Kong are investigating the crypto trading platform Hounax after over 130 people reported being scammed. The Securities and Futures Commission had previously listed Hounax as a suspicious platform due to false claims about its connections with a financial institution and venture capital firm. The scam involved impersonating investment experts and enticing victims to invest in virtual currencies with promises of high returns. However, when investors attempted to withdraw their money, they found it impossible to do so. The police have received reports from 131 individuals, with total losses amounting to $15.4 million.
Social Media and WhatsApp Lured Victims
The alleged scammers engaged victims through social media and WhatsApp, inviting them to group chats with “hot tips.” Victims were then instructed to download the company app through a hyperlink and transfer funds to a third-party account to boost their investment account. Although victims initially saw apparent returns, these gains turned out to be fictitious, and their transferred funds were moved elsewhere. Attempts to withdraw money were met with rejection or demands for a verification fee, which could reach up to 80% of the initial funds. Even after paying the fee, victims were unable to retrieve their money.
Arrests Imminent, Website and Accounts Blocked
Authorities in Hong Kong have vowed to make arrests soon in response to the Hounax scam. The police have requested telecom companies and social media platforms to block the website and associated accounts. It is important for investors to exercise caution when dealing with crypto trading platforms and be wary of promises of high returns. Always conduct thorough research before investing and verify the legitimacy of the platform. If an investment opportunity seems too good to be true, it probably is.
Hot Take: Hong Kong Cracks Down on Hounax Scam
Hong Kong authorities are taking action against the Hounax scam, which has defrauded over 130 individuals of $15.4 million. The scammers used social media and WhatsApp to lure victims with false promises of high returns on virtual currencies. Victims were tricked into transferring funds to a third-party account, only to find that their money had disappeared. The police are investigating the case and arrests are expected soon. This incident serves as a reminder for crypto investors to exercise caution and thoroughly research any trading platforms before investing. If something seems too good to be true, it probably is.
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