Hong Kong cryptocurrency regulators are under fire again after the founder of the Hounax exchange reportedly disappeared with $19 million.

The unnamed founder of an unlicensed cryptocurrency exchange in Hong Kong has reportedly fled with $19 million, leaving users of the platform in limbo and the digital asset-friendly city dealing with its second major cryptocurrency scandal in nearly two months. I did it.

As of Tuesday, about 145 people had been affected by the Hounax exchange hack, according to police, and Hong Kong’s SEC, the Securities and Futures Commission, is now facing criticism for being too lax in its approach to cryptocurrencies.

Hounax was originally co-founded by the Coinbase technology team and lured retail investors through social media by claiming to have a Canadian financial services business license. The exchange also said it was attracting investments from Sequoia Capital and IDG Capital, but in early November the SFC labeled it a suspicious platform and warned investors to avoid it.

Balances on the Hounax app reportedly increased after investors made deposits, but according to authorities and local media, the funds had already been depleted.

Cryptocurrency trading is banned in mainland China, but Hong Kong is increasingly embracing digital assets, introducing a licensing regime in June and allowing some types of cryptocurrency trading.

The Hounax hack follows the disappearance of more than $120 million from the unlicensed JPEX cryptocurrency exchange last September. Afterwards, 66 people, including influential figures such as Joseph Lam and JPEX employees, were arrested in connection with this incident.

Some Hong Kong lawmakers have criticized the SFC for not doing more to prevent such abuses. Electoral Commission member Doreen Gong Yukpoon said Hong Kong’s cryptocurrency regulator could have intervened earlier and should have shut down unregulated exchanges to avoid leaving “every investor to their own devices.” standard.

Hong Kong CEO John Lee Kachiu said on Tuesday that “the government will actively cooperate” with the SFC if it asks for more powers to crack down on unregulated exchanges like Honax.

This story originally appeared on Fortune.com.