Hong Kong Launches Probes Into $15.4 Million Crypto Scam by Hounax

It has been just revealed the fact that Hong Kong launched probes into the $15.4 million crypto scam by Hounax. Check out the latest reports about the matter below.

Hong Kong police are investigating crypto trading platform Hounax following 131 reports of a $15.4 million scam.

Victims aged 19 to 78, including a 69-year-old woman who lost $1.5 million, were lured into investing in cryptocurrency through the platform before being unable to withdraw their funds.

The Securities and Futures Commission in Hong Kong recently labeled Hounax as a suspicious virtual asset trading platform.

According to the SFC, Hounax falsely claimed to be a cryptocurrency trading platform in partnership with a financial institution and a venture capital firm.

The company appears to target Hong Kong investors, with pre-filled +852 field in its user log-in page and social media channels on Facebook, X (formerly Twitter), and YouTube under the name “Hounax Hong Kong.”

In a recent interview with Now.com, Hong Kong lawmaker Johnny Ng urged the SFC to take a more proactive approach in contacting unlicensed crypto trading platforms to identify problematic firms earlier and prevent risks.

The police force is investigating Hounax following the authorities’ September investigation into JPEX, another crypto trading platform.

According to a report by the Hong Kong Economic Journal, as of Sunday, the police have received reports from 2,623 victims, with around HK$1.6 billion involved in the case.

Currently, 66 people related to the case have been arrested by the police. In a recent development, the chief partner of JPEX Taiwan and a lecturer were detained by Taiwan prosecutors earlier this month on suspicion of violating banking and anti-money laundering laws.

Stay tuned for more juicy news from the crypto space and make sure to keep an eye on the market as well, big moves are reportedly coming.