Unlicensed Hounax Leaves 145 Users with $18.9 Million Loss in Hong Kong

<p>Hong
Kong authorities reported that 145 users fell victim to a scam orchestrated by
the unlicensed cryptocurrency exchange Hounax. It has resulted in a loss of 148
million HKD ($18.9 million), as reported by local media Shenzhen Commercial
News on November 27. During an initial press conference on November 25, local
police informed the public about the reports regarding Hounax. </p><p>SFC
Identifies Nine Suspicious Crypto Investment Platforms</p><p>The
Hong Kong Securities Regulatory Commission (SFC) disclosed that, as of yesterday
(Monday), they had received 18 complaints about the exchange, ranging from
amounts of 12,000 HKD to 10 million HKD. Despite claiming to be a licensed
platform in collaboration with legal financial institutions, Hounax was listed
by the SFC as a suspicious platform earlier, with a warning about the
associated risks. </p><p>The
platform allegedly attracted local customers by falsely asserting it was
founded by the original Coinbase technical team, possessed a license from
Canadian authorities, and was exploring investments from entities like Sequoia
Capital and IDG Capital.</p><p>Chief
Inspector Ke Yongn of the Commercial Crime Investigation Section of the Hong
Kong Police stated that Hounax also used social media to lure victims. However,
the official Facebook page of the platform is reportedly no longer online. The
SFC has identified nine suspicious crypto investment platforms, including
Hounax, JPEX, Hong Kong Digital Research Institute, BitCuped, FUBT,
futubit/futu-pro, EFSPD, OSL trading, and arrano.network. </p><p>This
incident followed a <a href="https://www.financemagnates.com/cryptocurrency/crypto-exchange-jpex-halts-trading-hk-police-arrest-an-influencer/">major scandal involving the JPEX
exchange in Hong Kong earlier this year</a>, where over 2,000 complaints were received,
resulting in approximately $180 million in losses. So far, 66 individuals have
been arrested in connection to the JPEX scandal. These events have prompted
local regulators in Hong Kong to enhance crypto regulation to prevent further
industry catastrophes. However, regulators have affirmed that the country's
one-year grace period for crypto exchanges will remain unchanged.</p><blockquote><p lang="en" dir="ltr">