Hong Kong authorities issue public warning against fraudulent cryptocurrency exchange masquerading as MEXC Global
Hong Kong’s Securities and Futures Commission (SFC) and local law enforcement agencies have jointly issued a public warning against companies posing as cryptocurrency exchange MEXC Global.
Scammers are reportedly posing as legitimate virtual asset trading platforms (VATPs) and luring unsuspecting victims into participating in what appears to be cryptocurrency investment scams.
The list of blocked web domains included in the alert shows that scammers are using links from addresses that start with “mexc” and end with random alphabets, similar to phishing links.
MEXC Global’s actual website does not appear in the listing as of press time.
Scam Alert
The SFC placed MEXC and its associated websites on a suspicious virtual asset trading platform alert as of February 9, following information being shared between the SFC and police in a joint working group focused on monitoring and investigating illegal activity in the virtual asset space. I put it on the list. .
Victims accessed social media or instant messaging chat groups under the pretense of receiving free investment advice, but were directed to a website operated by MEXC to purchase cryptocurrency. These individuals were then prompted to deposit funds into specific bank accounts for investment purposes and later encountered difficulties when attempting to withdraw the funds.
Hong Kong police have taken steps to block access to websites operated by MEXC. However, concerns persist that MEXC may continue to create new websites using similar domain names to perpetuate its fraud scheme. The public must remain alert and alert to these deceptive practices.
The SFC’s repeated warnings highlight the importance of due diligence and the need for investors to be wary of investment opportunities that are “too good to be true”, especially those promoted through social media platforms and instant messaging apps.
The regulator said fraudulent, unlicensed platforms often use names similar to legitimate entities to mislead investors. The public is advised to check the legitimacy of virtual asset trading platforms before engaging in investment activities to protect against potential fraud.
regulatory crackdown
The warning to MEXC comes amid a broader regulatory crackdown on unlicensed cryptocurrency operations in Hong Kong following the introduction of a regulatory framework for cryptocurrency exchange licensing last year.
The SFC recently reminded companies engaged in cryptocurrency exchange services to apply for licenses by February 29 or cease operations by May 31. To date, Hong Kong has issued licenses to two platforms under the new framework: HashKey and OSL.
Hong Kong authorities have also launched a public consultation on legislative proposals to implement a comprehensive licensing regime for over-the-counter virtual asset trading service providers.
The plan proposes to mandate licensing requirements for companies providing spot trading services for virtual assets and expand oversight by the Commissioner of Customs and Enforcement (CCE) to cover all over-the-counter virtual asset services. This includes monitoring licensees’ compliance with anti-money laundering and counter-terrorist financing standards.