The cryptocurrency market has been occupied with regulatory processes for a long time, and these procedures continue to increase by the day. Accordingly, after receiving the necessary reports from 131 individuals claiming a combined loss of HK$120 million, worth 15.4 million dollars, the Hong Kong police initiated an investigation on November 25 into the cryptocurrency market company Hounax.
How Did the Process Evolve?
The South China Morning Post reported that on November 25, the Hong Kong police announced an investigation into the alleged fraud and promised to make arrests in the coming days. According to the report, a 69-year-old retired woman was among the victims, ranging in age from 19 to 78, and had lost a total of 12 million Hong Kong dollars in assets.
The inspector of the Commercial Crime Bureau, Chan Wai-kei, told the local media that the fraudster convinced people to invest in the cryptocurrency market through a platform. However, when investors tried to withdraw their money, they discovered they had been defrauded.
Measures Against Unlicensed Platforms Continue
Earlier this month, the Securities and Futures Commission of Hong Kong (SFC) listed Hounax as a suspicious crypto asset platform. On its website, the SFC stated:
“The company claims to be a cryptocurrency trading platform in collaboration with a financial institution and a venture capital firm, but this is not the case. The user login page with a pre-filled +852 area code and social media channels ‘Hounax Hong Kong’ on Facebook, X, and YouTube seem to target Hong Kong investors.”
Hong Kong lawmaker Johnny Ng suggested in an interview with Now com on November 27 that the SFC needs to play a more active role in contacting unlicensed crypto trading platforms to detect problematic firms earlier to mitigate risks in the cryptocurrency market.
The Hong Kong police’s investigation into Hounax follows the authorities’ September investigation into the crypto trading platform JPEX. According to the Hong Kong Economic Journal, as of November 26, the local police had received reports from 2,623 victims, amounting to about 1.6 billion Hong Kong dollars. The police have so far arrested 66 individuals related to the case.
- Hong Kong police investigate Hounax for fraud.
- Victims range from 19 to 78 years old.
- Unlicensed platforms continue to pose risks.