The Hong Kong Police have intervened in a virtual investment fraud case. They found a devious plot where fraudsters acted like brilliant investment experts. They convinced innocent victims to invest through Hounax, promising them huge profits. Unfortunately, investors couldn’t reclaim their money, leading to heavy financial losses.
Based on the current information, the scam consists of an enormous 1.1 billion yuan, with the highest singular loss pegged at about 4 million yuan, impacting 131 people.
The head investigator, Chan Wai-kee, stated that Hounax began operations earlier this year, targeting the people of Hong Kong. Ko Yung-yan, a detective from the Commercial Crime Bureau, informed that these tricksters lured individuals into joining investment circles.
They used the allure of expert knowledge of stocks and digital assets to bait them. Victims were then instructed to download specific apps, move their money into accounts controlled by others, and pump more cash into their accounts.
Furthermore, Swindlers built trust by pretending to boost victims’ balances while secretly siphoning off their money. When people requested to get their money back, fraudsters either made up stories or charged excessive fees. Ultimately, the scammers vanished, losing all contact and leaving victims high and dry.
On November 1st, the China Securities Regulatory Commission declared Hounax an unofficial and potentially dubious virtual asset trading platform. The Hong Kong police find cracking this case challenging because victims don’t directly deal with the scammers; they transfer their funds through intermediary accounts.
The Hounax digital investment scenario in Hong Kong is a wake-up call about the risk associated with online investments. This situation emphasizes that detailed and meticulous study is necessary before putting money into the digital universe.
Moreover, it also highlights the immediate need for better laws and increased vigilance to protect against such well-planned scams.
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The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.
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