Hounax, a crypto trading platform, is accused of scamming Hong Kong investors, causing a loss of $15 million. Victims express frustration over late warnings from regulators, highlighting a growing trend of crypto-related fraud.
Hong Kong investors are reeling from an alleged crypto scam involving the Hounax trading platform, resulting in a reported loss of $15 million. Approximately 131 investors, ranging from 19 to 78 years old, filed 88 complaints with the Hong Kong police on Nov. 25. The Securities and Futures Commission (SFC) received an additional 15 complaints on Nov. 27. The primary investor, a 69-year-old retired woman, claimed a staggering loss of $1.54 million.
The alleged scammers established trust by portraying Hounax as a legitimate entity, even demonstrating successful withdrawals to unsuspecting victims. Initial relief turned into distress when investors discovered they couldn’t withdraw funds in November, prompting police reports. The SFC had labeled Hounax a “suspicious virtual asset trading platform” on Nov. 1, citing false claims about partnerships with financial institutions.
Victims lamented the late regulatory warning, asserting it came after their funds were already locked. Lawmakers criticized the SFC, with some arguing for earlier alerts. This incident follows the JPEX saga, indicating a concerning pattern of crypto-related fraud in Hong Kong.