Beware of These 7 Crypto Platforms: Hong Kong SFC Warns

• Hong Kong’s SFC warns the public against seven entities suspected of crypto fraud.
• The scams involved luring investors with promises of high returns, then blocking withdrawals.
• SFC said that investors should be aware of “too-good-to-be-true” opportunities.

Hong Kong’s Securities and Futures Commission (SFC) has issued a warning about seven entities suspected of crypto fraud, underscoring the risks facing investors in the city’s rapidly growing digital asset market.

As per the official notice , these entities were operating under names such as XTCQT, CEG, BTEPRO, Bitones.org, Yomaex Crypto Market Limited (Yomaex), Bstor (Bstorest), and Taurusemex.

Notably, Hong Kong, a major crypto hub in Asia, has attracted both genuine investors and fraudsters. According to the SFC’s warning, these platforms claim to offer services related to crypto trading. Some even use social media and messaging platforms to lure investors to their websites and get them to register.

After the users register and start trading, the real scam pops up. They try to withdraw the funds, only to be flagged with some warning or another. In some cases, these entities accuse the investor’s account of money laundering or some illegal activity, and then deactivate the account. Panic-stricken investors are then made to pay a huge amount in the name of “taxes” for the activation of the account and withdrawal of funds.

Notably, Taurusemex misled investors by stating that their accounts were registered with the SFC, to hype up a sense of false legitimacy to their operations.

The SFC has strongly advised the public to be cautious about online investment opportunities, adding:

“The public should be cautious about too-good-to-be-true investment opportunities and advice posted on social media platforms and via instant messaging apps. Investors should stay vigilant and beware of fraud when making investment decisions.”

The local police have taken action against these entities and blocked their websites. The SFC had issued similar warnings previously over various suspicious entities, including HongKongDAO and BitCuped.

Over the past years, cryptocurrency fraud cases have been rising in Hong Kong. The regional police last year arrested six people, including an online influencer named Joseph Lam, over a crypto fraud case involving JPEX . The scam caused losses of more than $127.8 million in digital assets.