Hong Kong SFC Flags Two Crypto Platforms for Suspected Fraud

• Hong Kong securities regulator has taken action against two crypto-native entities.
• The entities are accused of engaging in fraud.
• The regulator warned the public to beware of these entities.

The Hong Kong Securities and Futures Commission (SFC) has brought regulatory action against two entities over “suspected virtual asset-related frauds” and warned the public to beware of them.

The development comes after the regulator came under fire on November 27 for its “passive” response to a fresh crypto scandal involving Hounax . The Hounax platform is accused of duping users out of over $19.24 million.

SFC Cracks the Whip on BitCuped and HongKongDAO

In reassuring the crypto-skeptic public of its stance against digital assets-related fraud, the SFC issued a statement on December 6, noting that it had taken several actions against BitCuped and HongKongDAO over suspicious fraud activities.

While BitCuped is accused of making false claims on its website about its employees, probably to win the public’s trust, HongKongDAO allegedly issued a token, which is available for purchase on its website, without the SFC’s approval.

The regulator noted that HongKongDAO “may be disseminating false and misleading information” about itself, including that it had applied for a license to conduct regulated activities with the SFC in July 2022.

The SFC also accused HongKongDAO of lying that it was bidding for the Hong Kong Digital Currency Exchange License with the city’s regulatory framework for stablecoins.

Following these accusations, the SFC also brought enforcement actions against the entities.

Further, the regulator warned the public to be wary of these entities and “too-good-to-be-true investment opportunities and advice” shared on social media via instant messaging platforms.

Read how the JPEX scandal impacted Hong Kong’s crypto confidence:
JPEX Scandal Rattles Hong Kong’s Crypto Confidence

Stay updated on Hong Kong’s ambition of becoming a leading crypto hub:
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