SFC Warns Hong Kong Investors of 7 Potential Crypto Scams

Hong Kong’s Securities and Futures Commission (SFC) has issued a warning about seven entities suspected of crypto fraud, highlighting the risks investors face in the city’s burgeoning digital asset market.

The official notice named the entities as XTCQT, CEG, BTEPRO, Bitones.org, Yomaex Crypto Market Limited (Yomaex), Bstor (Bstorest), and Taurusemex. Hong Kong, a major crypto hub in Asia, has drawn both genuine investors and fraudsters. According to the SFC, these platforms claim to offer services related to crypto trading, often using social media and messaging platforms to attract investors to their websites.

Once users register and start trading, the scam becomes apparent. Investors attempting to withdraw funds encounter various warnings, such as accusations of money laundering, leading to account deactivation. Panicked investors are then required to pay substantial fees, purportedly for taxes, to reactivate their accounts and withdraw funds.

Taurusemex’s False Legitimacy Claims

One of the named entities, Taurusemex, misled investors by falsely claiming their accounts were registered with the SFC, creating a false sense of legitimacy. The SFC has strongly advised the public to be careful with online investments. They stressed the importance of being cautious about offers that seem too good to be true and advice found on social media and messaging apps.

The local police have taken action against these entities, blocking their websites. The SFC has previously issued similar warnings about other suspicious entities, including HongKongDAO and BitCuped. 

Cryptocurrency fraud cases have been on the rise in Hong Kong. Last year, the regional police arrested six people, including online influencer Joseph Lam, in connection with a crypto fraud case involving JPEX, resulting in losses of over $127.8 million in digital assets.

The SFC continues to monitor the situation closely, urging investors to stay vigilant and report any suspicious activities. This warning serves as a crucial reminder of the importance of conducting thorough research and due diligence before engaging in any online investment opportunities.