Hong Kong Regulator Warns of Fraudulent Entity Impersonating Crypto Exchange MEXC
Summary:
Hong Kong's Securities and Futures Commission (SFC), in conjunction with local law enforcement, has issued a warning about a deceitful entity claiming to be the well-known cryptocurrency exchange, MEXC. The imposter has been misleading potential investors and misappropriating their funds. The SFC has identified several fraudulent websites associated with the deceptive entity, all of which include "MEXC" in their domain names. This warning comes amid increased scrutiny of the actual MEXC exchange, following reports of accounts being frozen and funds seized due to claimed "abnormal trading activities.
Hong Kong's financial regulator, the Securities and Futures Commission (SFC), in collaboration with local law enforcement, has issued a warning about a deceptive entity purporting to be the well-known crypto exchange MEXC. Reportedly, this fraudulent party has been misleading would-be investors and diverting funds. Recently, the SFC of Hong Kong reiterated that they are working together with the police in a combined operation aimed at overseeing and probing virtual asset trading providers suspected of being involved in illicit practices.
The SFC warns the public about a deceitful entity posing as 'MEXC' that is luring investors to deposit money into its bank account under the guise of investments. However, those subject to the scam encounter difficulties when they attempt to withdraw their money later. The fraudsters use chat groups to steer victims towards websites operated by the imposter MEXC, where they are persuaded to deposit money for what they believe to be investments. Unfortunately, upon trying to recoup their funds, these individuals face obstacles.
Moreover, the SFC has pointed out eight websites believed to be linked to the dishonest party. Each of these sites includes "MEXC" in their domain names, with examples being "mexczx.icu" and "mexczx.co". The SFC warns the public to be vigilant of similar website domains, which the sham MEXC may continuously generate.
Just a few months ago, in September 2023, the SFC announced plans to disclose a list of officially licensed, presumed licensed, shutting down, and pending-application virtual asset trading platforms to aid the public in distinguishing potentially unregulated platforms in Hong Kong.
This warning comes on the heels of heightened criticism about the regulatory decisions by the actual MEXC exchange. In December 2023, it was reported that several trader accounts were allegedly frozen by MEXC which led to their funds being confiscated. The exchange justified this action by citing “irregular trading activities.”
Furthermore, an anonymous trader, identified as Vida, alleged that he had lost $92,000 in Tether (USDT) tokens due to profits from several recent 15-day trades in MEXC’s futures market being lost.
Published At
2/10/2024 7:36:59 AM
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