Hong Kong Police and SFC Investigate Hounax Crypto Exchange
Hong Kong Police and the Securities and Futures Commission (SFC) are conducting an investigation into Hounax, a non-licensed cryptocurrency exchange. This action comes after the authorities received 145 reports of fraud from victims who suffered a total loss of around HK$148 million.
Reports of Complaints and Losses
The SFC disclosed that they have received 18 complaints regarding Hounax, with the amounts involved ranging from HK$12,000 to as high as HK$10 million. The CEO of the SFC, Julia Leung, clarified that Hounax is not licensed and has not applied for a license from the SFC. As a result, the SFC does not have the power to shut down its operations but has listed the platform as unlicensed and suspicious.
Connection to JPEX Scandal
In November, Taiwan authorities arrested individuals connected to the JPEX cryptocurrency fraud, which resulted in losses of nearly $213 million. The investigation into JPEX is ongoing, with Taiwanese celebrities also being investigated for their involvement in promoting the exchange. Following the JPEX scandal, Hong Kong regulators have been tightening crypto regulations, and these recent allegations against Hounax are likely to further intensify regulatory measures.
Hot Take: Heightened Scrutiny on Unlicensed Crypto Platforms
With Hong Kong’s authorities investigating Hounax and its connection to fraud, it highlights the importance of conducting due diligence when engaging with cryptocurrency exchanges. Unlicensed platforms pose significant risks to investors’ funds and may lack regulatory oversight. To protect yourself from potential scams or rug pulls, make sure to only use licensed platforms that comply with regulatory requirements. Stay informed about the latest developments in the crypto industry and exercise caution when dealing with virtual asset trading platforms.
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