Beware of those 7 crypto platforms: Hong Kong SFC warns

• Hong Kong's SFC warns the general public about seven entities suspected of crypto fraud.
• The scams concerned luring buyers with guarantees of excessive returns after which blocking withdrawals.
• The SFC stated buyers ought to pay attention to alternatives which can be “too good to be true”.

Hong Kong's Securities and Futures Fee (SFC) has issued a warning in opposition to seven entities suspected of fraud in cryptocurrencies, highlighting the dangers going through buyers within the metropolis's fast-growing digital asset market.

In keeping with the official announcement, these entities operated underneath names equivalent to XTCQT, CEG, BTEPRO, Bitones.org, Yomaex Crypto Market Restricted (Yomaex), Bstor (Bstorest) and Taurusemex.

Specifically, Hong Kong, a serious crypto hub in Asia, has attracted each real buyers and scammers. In keeping with the SFC warning, these platforms declare to supply providers associated to cryptocurrency buying and selling. Some even use social media and messaging platforms to lure buyers to their web site and get them to enroll.

After customers join and begin buying and selling, the actual rip-off seems. They attempt to choose sources solely to be flagged with some warning or different. In some instances, these entities will accuse the investor's account of cash laundering or some criminal activity after which deactivate the account. Panicked buyers are then pressured to pay an enormous quantity within the identify of “taxes” for account activation and withdrawal.

Specifically, Taurusemex misled buyers by stating that their accounts had been registered with the SFC to create a way of false legitimacy to their operations.

The SFC strongly advises the general public to be cautious about on-line funding alternatives, including:

“The general public needs to be cautious of funding alternatives and recommendation posted on social media platforms and thru prompt messaging apps which can be too good to be true. Buyers ought to stay vigilant and be careful for fraud when making funding selections.”

The native police took motion in opposition to these entities and blocked their web sites. The SFC has beforehand issued related warnings relating to numerous suspicious entities, together with HongKongDAO and BitCuped.

Cryptocurrency scams have been on the rise in Hong Kong lately. Final yr, regional police arrested six individuals, together with a web based influencer named Joseph Lam, in a crypto-fraud case involving JPEX. The rip-off induced losses of greater than $127.8 million in digital property.