Hong Kong Takes Action: Bans Two Cryptocurrency Sites for Misleading Investors

• Hong Kong’s Securities and Futures Commission (SFC) banned the two crypto websites for scamming users.
• HongKongDAO and BitCuped were blocked after a joint effort of the police and internet providers.
• The two cases come not long after investors lost over 1.6 billion HKD ($204 million) in JPEX and Hounax.

Get the scoop on recent cryptocurrency scams in Hong Kong and learn how authorities are fighting back against fraudulent websites.

The South China Morning Post reported on Wednesday that the securities watchdog had blacklisted and blocked access to the HongKongDAO and BitCuped sites after authorities were tipped off that the platforms were misleading investors.

Find out how HongKongDAO and BitCuped were luring in unsuspecting investors, and what the consequences are for their fraudulent activities.

According to the SCMP, Hong Kong regulators found that HongKongDAO had hoodwinked users into buying a token dubbed “HKD”. The platform also offered false assurances, lying to users that it had applied for licences from the SFC and government.

HongKongDAO was reportedly on the SFC’s radar since November 24 and was found to have two chat groups. The Chinese chat group had over 10,000 members, while the English one had over 1,700. The project had ostensibly touted HKD as a token with huge market value.

Discover the details of how HongKongDAO was able to scam users before being shut down by authorities.

BitCuped, on the other hand, misled investors by falsely listing Hong Kong Exchanges and Clearing (HKEX) chairman Laura Cha and CEO Nicolas Aguzin as affiliated with the platform. SFC noted that neither individual had any connection with BitCuped.

Learn more about BitCuped’s deceptive tactics and how it exploited the names of high-profile industry figures to lure in investors.

While the two sites have been banned for scamming investors, the SFC did not disclose how many people had fallen victim, or the total losses suffered. Police investigations are underway, the SMCP reported.

Find out more about the fallout from these scams and how authorities are responding to protect investors from similar schemes in the future.

In August, the SFC warned crypto platforms and exchanges against misleading investors with false claims about their registration status. The regulator also cautioned providers against offering products and services not registered or authorised by the commission.

Stay informed on the latest news and updates on cryptocurrency regulations and enforcement actions in Hong Kong.

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