Hong Kong’s Securities and Futures Commission (SFC) has taken action against a suspected fraudulent crypto asset trading platform called Hounax. The SFC flagged the company earlier this month, marking a significant step in the city’s efforts to combat crypto-related scams. The Hong Kong Police Force has initiated an investigation into the alleged scam, following reports from 131 victims who claimed significant financial losses totaling HK$120 million ($15.4 million). The victims range from young adults to senior citizens, highlighting the wide-reaching impact of such schemes. The scam involved enticing individuals to invest in cryptocurrencies through the Hounax platform, but when they tried to withdraw their funds, they were unable to do so. The SFC had already raised concerns about Hounax’s operations, as the platform falsely claimed business associations with a financial institution and a venture capital firm. The incident has prompted calls for more proactive regulatory measures, with lawmakers emphasizing the need for the SFC to engage more actively with unlicensed crypto trading platforms. Hong Kong has been tightening its crypto regulations, with the Hong Kong Monetary Authority issuing warnings to companies in the crypto space and the SFC establishing a dedicated group to monitor and investigate crimes associated with crypto exchanges.

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Information	Details
Geography	Asia
Countries	🇭🇰
Sentiment	negative
Relevance Score	1
People	Johnny Ng, Chan Wai-kei
Companies	Hong Kong Police Force, The South China Morning Post, financial institution, Hong Kong’s Securities and Futures Commission (SFC), Hounax, Hong Kong Monetary Authority (HKMA), crypto exchanges., police, venture capital firm, Commercial Crime Bureau
Currencies	Hong Kong Dollar
Securities	None