Hong Kong's SFC Warns of Suspected Fraud Involving Crypto Firms BitCuped and HongKongDAO
Summary:
Hong Kong's Securities and Futures Commission (SFC) has issued an alert regarding potential fraud linked to crypto organizations BitCuped and Hong Kong Digital Research Institute, aka HongKongDAO. The Hong Kong Police have restricted access to their websites and cease-and-desist letters have been sent to the operators. The SFC indicates that HongKongDAO might be spreading deceptive information, and individuals with no affiliations with BitCuped are falsely listed as executives on its website. The regulatory body also reiterated its plan to update digital currency sale guidelines by June 2024.
Hong Kong's financial regulatory authority, the Securities and Futures Commission (SFC), has issued an alert concerning potential fraud involving cryptocurrency organizations BitCuped and Hong Kong Digital Research Institute, also known as HongKongDAO. On December 6th, the SFC announced that the Hong Kong Police have cut off access to the websites of both entities, citing concerns that individuals could be tricked into making unlawful investments. Additionally, a halt-and-discard order has been issued to the administrators of these websites.
According to the SFC, there are suspicions that HongKongDAO is distributing false and potentially misleading data about its operations through digital platforms. The regulator also noted that BitCuped stated on its website that 'Laura Cha' and 'Nicolas Aguzin' hold the positions of Chairman and CEO respectively, although neither are associated with BitCuped at all.
The deceptive information concerning HongKongDAO threatens to convince potential investors that its offerings are "officially authorized and legitimate". As such, they may be tempted to invest in the HKD token. Additionally, the SFC clarified that Cha and Aguzin are in fact executives at the Hong Kong Stock Exchange, rather than having any connections to BitCuped.
The SFC stated in October that it intends to update its guidelines on digital currency trading and capital requirements in response to changes in the industry and feedback from its operators. From June 2024 onwards, exchanges in Hong Kong will need to acquire a virtual asset service provider license approved by SFC.
Published At
12/6/2023 8:23:07 PM
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