The Hong Kong Securities and Futures Commission (SFC) has issued an alert on a suspected fraudulent platform impersonating the presence and operations of a popular cryptocurrency exchange MEXC. This development comes from a joint operation between the Hong Kong regulator and the local police force aimed at uncovering illicit activities of virtual asset trading platforms (VATPs).
SFC Warns Hong Kong Citizens Of Fraudulent Trading Platform
According to an announcement on February 9, the SFC is warning crypto enthusiasts and investors of an ambiguous trading platform that operates under the name “MEXC.” In a joint investigation with the Hong Kong police, the securities market regulator discovered that “MEXC” has lured several investors into becoming members of group chats in which it claimed to offer “free investment advice.”
Through this medium, “MEXC” was able to direct unsuspecting investors into depositing funds through fraudulent websites in order to purchase cryptocurrencies. The suspected entity allegedly provided its victims with bank accounts which it claimed were for investment purposes; however, after “investing”, customers were unable to process a withdrawal.
The SFC has now listed “MEXC” as part of its “Suspicious virtual asset platforms” with remarks that state:
The entity purported to be a virtual asset trading platform operating at the above websites and is suspected of engaging in fraudulent activities. Victims were asked to deposit funds into designated bank accounts for investment purposes, but after that, they reported difficulties with fund withdrawal.
The SFC has also listed all eight website domains associated with the suspected VATP. In addition, the securities watchdog continues to admonish Hong Kong citizens against all investment schemes that appear “too-good-to-be-true”, emphasizing the need for vigilance in making financial decisions.
MEXC Clears Its Name, Denounces Imposter
In response to SFC’s announcement, prominent cryptocurrency exchange MEXC has come out to declare the trading platform under investigation as a counterfeit with no links to its official operations. In an X post on Saturday, MEXC has advised users to avoid interacting with such fraudulent platforms stating its only official website is mexc.com.
Launched in 2018, MEXC is ranked as one of the top global crypto trading platforms, with over 10 million users in 170 nations worldwide. However, this latest development only adds to the recent strings of controversies surrounding Seychelles-based exchange. In December 2023, Bitcoinist reported the trading platform was accused of fabricating its order book amidst heavy criticism for allegedly locking several investors out of their accounts and seizing their assets.
Total crypto market valued at $1.729 trillion | Source: TOTAL chart on Tradingview.com
Featured image from Medium, chart from TradingView
