Hong Kong’s SFC warns of MEXC related suspected crypto fraud

Hong Kong’s Securities and Futures Commission (SFC) has warned of an alleged scam involving crypto exchange MEXC.

According to the SFC, on Feb. 9, police alerted the public to an alleged scam involving an organization posing as a virtual asset trading platform (VATP) and operating under the name MEXC.

The SFC has also included MEXC and its websites in its alert list for suspicious virtual asset trading platforms. Police took action to block MEXC websites.

The SFC and the police are now sharing intelligence on the case as part of a joint working group that monitors and investigates illegal VAT activity.

The regulator suspects MEXC lured victims to join social media or instant messaging chat groups under the guise of providing free investment advice.

“On these chat groups, victims interested in buying cryptocurrencies were referred to websites operated by MEXC. Victims were then asked to deposit funds into designated bank accounts for investment purposes, but after that, they reported difficulties with fund withdrawal.”

SFC statement

Hong Kong’s SFC previously warned unregistered cryptocurrency exchanges to apply for licenses by Feb. 29 or close by May 31.

Hong Kong initiated a cryptocurrency licensing framework for virtual asset trading platforms last year, paving the way for licensed exchanges offering retail trading services. Currently, the city-state has licensed two platforms including HashKey and OSL. However, the SFC carefully examined applications from 14 crypto companies.