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

Must read

The Hong Kong SFC identified eight websites linked to the fraudulent entity posing as the crypto exchange MEXC, all containing the exchange’s name within the domain name.

1666 Total views

6 Total shares

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

The Hong Kong Securities and Futures Commission (SFC), alongside the local Police force, has issued a warning regarding a fraudulent entity posing as cryptocurrency exchange MEXC. The imposter is allegedly deceiving potential investors and siphoning funds.

In a recent statement, the SFC highlighted it is collaborating with the police in a joint operation as part of its broader efforts to monitor and investigate virtual asset trading providers (VATPs) engaging in illicit activities.

Hong Kong Securities and Futures Commission alert list. Source: SFC

The regulator alleged that the fraudulent entity operating under MEXC is tricking investors into depositing funds into its bank account for supposed investments, only to find difficulties when attempting to withdraw the funds later.

“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.”

Furthermore, the SFC identified eight websites suspected to be associated with the fraudulent entity. All of these websites contain MEXC in their domain names, such as “mexczx.icu” and “mexczx.co.”

“The public should beware of websites with similar domain names which may be continuously created by MEXC,” the statement notes.

In September 2023, the SFC said it would publish a list of licensed, deemed licensed, closed down and application-pending VATPs to help the public identify potentially unregulated VATPs in Hong Kong.

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

This comes amid increasing scrutiny over the enforcement decisions made by the actual MEXC exchange in recent times.

In December 2023, Cointelegraph reported that MEXC allegedly froze several traders’ accounts and seized their funds. The exchange claims the actions were motivated by “abnormal trading activities.”

On X, the pseudonymous trader Vida even alleged that he lost $92,000 in Tether (USDT) tokens, following profits from multiple recent trades over 15 days in MEXC’s futures market.

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

More articles

Latest article