Hong Kong Authorities Investigate $15.4 Million Scam on Hounax: Report
Police in Hong Kong have begun investigating the crypto trading platform after more than 130 people said they had been scammed.
South China Morning Post reported on Saturday that Hong Kong authorities had vowed to make arrests soon in light of reports of over $15.4 million being stolen on Hounax.
Earlier this month, the Securities and Futures Commission had listed Hounax as a suspicious crypto trading platform after it was found to have lied about its ties with a financial institution and a venture capital firm.
“The scammer impersonated investment experts and lured people to invest in virtual currencies through a virtual asset trading platform with promises of high returns,” said Chan Wai-kei, superintendent of the force’s commercial crime bureau. “But when the investors went to withdraw the money, they were unable to do so.”
Chan said that the police had received 88 reports from 131 individuals who alleged losses totaling $15.4 million. The age range of the victims was from 19 to 78, with the largest reported loss of $1.54 million belonging to a 69-year-old retired woman.
The platform, which claimed to be Singaporean-ran, had commenced operations earlier this year and seemed to focus on Hong Kong investors, according to Chan. However, he clarified that the police did not uncover any connections between Hounax and the JPEX crypto exchange scandal, which impacted over 2,500 individuals and resulted in losses exceeding $192 million.
Chief Inspector Or Wing-yan disclosed that the alleged Hounax scammers engaged individuals via social media and WhatsApp, luring them into group chats with “hot tips.” Victims were then prompted to download the company app through a hyperlink and transfer funds to a third-party account to boost
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