Hong Kong Regulators Flag ‘Fake’ MEXC Crypto Platform

BySamson Ononeme

Feb 10, 2024 ,
Hong Kong financial regulators and police warn residents about suspected cryptocurrency investment fraud by an entity posing as trading platform MEXC.

Key Insights

  • Hong Kong regulators warn public about suspected crypto fraud by entity posing as platform MEXC
  • Victims lured via social media groups with promises of investment advice and crypto purchases
  • Customers reported being unable to withdraw funds after depositing into designated bank accounts

HONG KONG (MarketsXplora) – Hong Kong’s securities watchdog and police warned the public on Friday about suspected fraud by an entity calling itself cryptocurrency trading platform MEXC via various websites.

The Securities and Futures Commission (SFC) and police said in statements they have been jointly investigating MEXC, which is accused of inviting victims via social media chat groups to invest in crypto but preventing them withdrawing funds.

A website link showed one URL cited by authorities as suspicious, mexczx.icu, was inaccessible on Friday.

The regulators said victims were asked to deposit money into designated local bank accounts by MEXC, which promised investment advice and cryptocurrency purchases, only to find themselves unable to retrieve their funds.

The SFC added MEXC to its list of “high-risk” virtual asset trading platforms while police blocked associated websites, in the latest move by Hong Kong’s authorities against crypto crime.

Residents have been targeted by numerous schemes involving fake or fraudulent crypto investments and trading advice in chat groups in recent years, the regulators cautioned.

In some cases, scammers pretended to be legitimate, registered companies by adopting similar sounding business names aiming to trick unsuspecting victims.

The SFC warned people to avoid taking cues from “too good to be true” investment opportunities promoted online and carefully check entities offering crypto services amid a global regulatory push to root out digital currency scams.

Samson Ononeme

Meet Samson Ononeme, a dynamic writer, editor, and CEO of marketsxplora.com. With a passion for words and a sharp business acumen, Samson captivates readers with captivating storytelling and delivers insightful market analysis. He is a trailblazer in the finance industry, empowering individuals with knowledge and shaping the narrative of money. Get ready to be inspired by his literary prowess and entrepreneurial leadership.

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