Hong Kong Regulator Warns of 2 Entities Suspected of Crypto Frauds

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Hong Kong Regulator Warns of 2 Entities Suspected of Crypto Frauds

Hong Kong’s financial regulator has warned the public about two entities suspected of crypto frauds. In addition to issuing cease and desist letters to relevant website operators requesting them to cease offering crypto tokens for purchases, the regulator advises the public to “be cautious about too-good-to-be-true investment opportunities and advice posted on social media platforms and via instant messaging apps.”

Hong Kong Regulator’s Crypto Fraud Warning

The Hong Kong Securities and Futures Commission (SFC) issued a notice on Wednesday, warning the public of two entities suspected of involvement in virtual asset-related frauds. The two entities are Hong Kong Digital Research Institute, aka Hong Kong DAO, and Bitcuped. According to the notice:

At the SFC’s request, the Hong Kong Police Force has taken steps to block access to the websites of Hong Kong DAO and Bitcuped. The SFC also issued cease and desist letters to relevant website operators requesting such websites to cease offering for purchase a token issued by Hong Kong DAO.

Hong Kong DAO has issued a token known as HKD, which is available for purchase on its website. The SFC suspects that the entity may be disseminating false and misleading information about itself and its business through online channels.

Similarly, the financial regulator noted that Bitcuped has made false claims. For example, its website shows that Laura Cha and Nicolas Aguzin serve as its chairman and chief executive officer respectively, when in fact none of them has any affiliations with Bitcuped.

The Hong Kong regulator also warned investors: “Online investment scams may involve any type of assets and are perpetrated through multiple channels. Those who fall victim can suffer substantial losses.” The SFC advises the public to “be cautious about too-good-to-be-true investment opportunities and advice posted on social media platforms and via instant messaging apps, on which they may be lured to invest by individuals who are not investment professionals.” The regulator concluded:

Investors should stay vigilant and beware of fraud when making investment decisions.

What do you think about the warnings by Hong Kong’s Securities and Futures Commission? Let us know in the comments section below.

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