Home>Business>​​Hong Kong authorities say 145 victims and $18.9M misplaced in Hounax rip-off

​​Hong Kong authorities say 145 victims and $18.9M misplaced in Hounax rip-off

Hong Kong authorities reported on Nov. 27 that 145 customers have been affected in a rip-off by the unlicensed cryptocurrency trade Hounax, leading to a lack of 148 million HKD ($18.9 million), in response to local media Shenzhen Industrial Information. 

On Nov. 25, native police held an preliminary press convention to tell the Hounax platform of the studies. The Hong Kong Securities Regulatory Fee (SFC) mentioned that as of the twenty seventh, they obtained 18 complaints about trade relating to quantities starting from 12,000 HKD to 10 million HDK ($1,539- $1.2 million).

In line with native police, Hounax claimed to be a licensed platform that cooperated according to authorized monetary establishments, though on Nov. 1 the SFC listed it as a suspicious platform and cautioned customers over its dangers.

Hounax allegedly recruited native prospects by way of claims it was based by the unique Coinbase technical workforce, it had a license from Canadian authorities, and it was contemplating investments from large names like Sequoia Capital and IDG Capital.

The chief inspector of the Industrial Crime Investigation Part of the Hong Kong Police, Ke Yongn, mentioned the platform additionally utilized social media to draw victims. Nonetheless, in response to the report, the official Fb web page of the platform is not on-line.

Associated: Binance-linked HKVAEX still preparing to apply for license in Hong Kong

The SFC at present lists 9 suspicious crypto funding platforms, together with Hounax, JPEX, Hong Kong Digital Analysis Institute, BitCuped, FUBT, futubit/futu-pro, EFSPD, OSL buying and selling, and arrano.community.

This incident follows a major scandal with the JPEX exchange in Hong Kong earlier this 12 months. Native authorities obtained greater than 2,000 complaints from JPEX customers and finally reported round $180 million in losses. Sixty-six people have been arrested in relation to the scandal thus far.

These occasions have triggered native regulators in Hong Kong to tighten crypto regulation to keep away from one other trade disaster. Nonetheless, regulators have mentioned the nation’s one-year grace period for crypto exchanges received’t change.

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