The Hong Kong Securities and Futures Commission (SFC) recently warned about a fraudulent entity posing as the prominent cryptocurrency exchange MEXC. The SFC is collaborating with the local Police force to investigate this scam as part of its broader efforts to monitor and probe into virtual asset trading providers (VATPs) engaging in illegal activities in Hong Kong.
According to the SFC, the fake MEXC is deceiving potential investors and siphoning their funds. The victims are tricked into depositing money into designated bank accounts for supposed investments. However, they need help attempting to withdraw their funds later. The chat groups referred the victims to fake MEXC websites when they showed interest in buying cryptocurrencies, as found by the SFC.
The regulator identified eight fraudulent websites suspected to be linked to the bogus entity. All these websites have “MEXC” in their domain names. The SFC warned that the fake exchange could continuously create similar website domains.
Hong Kong Securities and Futures Commission Alert List. Source: Hong Kong SFC
Hong Kong Probes MEXC Exchange Over Funds Seizure
This incident comes amid increasing scrutiny over the recent enforcement actions of the real MEXC exchange. In Dec 2023, MEXC allegedly froze several traders’ accounts and seized their funds due to “abnormal trading activities.” One trader claimed he lost $92,000 in Tether after making profitable trades over 15 days on the MEXC futures market.
The SFC and the Police strongly advise the public to verify the license of any VATP before investing money or depositing funds into them. Depositing funds into unregulated platforms puts one at risk of losing their money. The authorities vowed to continue monitoring and investigating illicit crypto activities under their purview.
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