Wednesday, May 22, 2024

Hong Kong SFC issues warning over imposter crypto exchange posing as MEXC


The Hong Kong Securities and Futures Fee (SFC), alongside the native Police power, has issued a warning concerning a fraudulent entity posing as cryptocurrency change MEXC. The imposter is allegedly deceiving potential traders and siphoning funds.

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In a latest statement, the SFC highlighted it’s collaborating with the police in a joint operation as a part of its broader efforts to monitor and investigate digital asset buying and selling suppliers (VATPs) participating in illicit actions.

Hong Kong Securities and Futures Fee alert listing. Supply: SFC

The regulator alleged that the fraudulent entity working underneath MEXC is tricking traders into depositing funds into its checking account for supposed investments, solely to seek out difficulties when making an attempt to withdraw the funds later.

“On these discussion groups, victims eager about shopping for cryptocurrencies had been referred to web sites operated by MEXC. Victims had been then requested to deposit funds into designated financial institution accounts for funding functions however after that they reported difficulties with fund withdrawal.”

Moreover, the SFC recognized eight web sites suspected to be related to the fraudulent entity. All of those web sites comprise MEXC of their domains, corresponding to “mexczx.icu” and “mexczx.co.”

“The general public ought to beware of internet sites with related domains which can be constantly created by MEXC,” the assertion notes.

In September 2023, the SFC stated it could publish an inventory of licensed, deemed licensed, closed down and application-pending VATPs to assist the general public determine potentially unregulated VATPs in Hong Kong.

Associated: Crypto exchange Debiex faces romance scam allegations, CFTC claims $2.3M in losses

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This comes amid rising scrutiny over the enforcement selections made by the precise MEXC change in latest occasions.

In December 2023, Cointelegraph reported that MEXC allegedly froze several traders’ accounts and seized their funds. The change claims the actions had been motivated by “irregular buying and selling actions.”

On X, the pseudonymous dealer Vida even alleged that he misplaced $92,000 in Tether (USDT) tokens, following income from a number of latest trades over 15 days in MEXC’s futures market.

Journal: Deposit risk: What do crypto exchanges really do with your money?