Hong Kong SFC Issues Warning on Fake Crypto Exchange

Hong Kong SFC Issue Warning on Fake Crypto Exchange
Hong Kong SFC Issue Warning on Fake Crypto Exchange

Hong Kong SFC along with local police warns about a fraudulent entity posing as the cryptocurrency exchange MEXC.

Hong Kong SFC in conjunction with the local police force, has issued a warning over a fraudulent entity acting as the cryptocurrency exchange MEXC.

The impersonator is allegedly stealing money and misleading prospective investors to get financial gain. As part of its larger efforts to monitor and investigate virtual asset trading providers (VATPs) participating in illegal activities.

Hong Kong SFC Issues Warning on Fake Crypto Exchange
Hong Kong Securities and Futures Commission alert list. Source: SFC

The Securities and Futures Commission (SFC) recently issued a statement in which it underlined the fact that it is working together with the police within the context of a joint operation.

Hong Kong SFC asserted that the fraudulent organization operating as MEXC is deceiving investors into depositing funds into its bank account to make investments only to run into difficulties when attempting to withdraw the funds later.

“On these chat groups, victims interested in buying cryptocurrencies were referred to websites operated by MEXC. Victims were then asked to deposit funds into designated bank accounts for investment purposes but after that they reported difficulties with fund withdrawal.”

In addition, the Hong Kong SFC discovered eight websites that are believed to be affiliated with the bogus company. Some examples of these websites include “mexczx.icu” and “mexczx.co,” both of which have the acronym MEXC in their domain names.

According to the statement, “the general public ought to be wary of websites with domain names that are similar to one another which MEXC may continuously create.”

In September 2023, the Securities and Futures Commission (SFC) announced that it would publish a list of licensed, presumed licensed closed down and application-pending VATPs in Hong Kong to assist the general public in identifying possibly uncontrolled ones.

Amid a growing amount of attention, there has been increasing focus on the enforcement choices made by the MEXC exchange in recent years. It wqs reported in December 2023 that MEXC froze the accounts of numerous traders and seized their cash.

MEXC claims that “abnormal trading activities” prompted the moves. Following winnings from many recent trades in MEXC’s futures market over the past 15 days, the pseudonymous trader Vida claimed that he lost $92,000 worth of Tether tokens on X because of his trading activities.