Subscribe to our newsletter and stay informed
In a proactive move to protect investors, the Hong Kong Securities and Futures Commission (SFC) has issued a stern warning about potential virtual asset-related fraud involving entities named "HongKongDAO" and "BitCuped." Collaborating with the Hong Kong Police Force, the SFC has not only sounded the alarm but has also taken decisive action by blocking access to associated websites, demonstrating a robust stance against suspected fraudulent activities.
At the center of the warning is HongKongDAO, which has introduced a token named "HKD" or "HongKongDAO" (HKD Token). The SFC suspects that this entity might be disseminating false and misleading information, raising concerns about the potential risks for unsuspecting investors. Of particular note is an online article falsely claiming that HongKongDAO holds licenses from the SFC for regulated activities, coupled with an active bid for a "Hong Kong Digital Currency Exchange Licence."
A similar spotlight falls on BitCuped, where the SFC has identified deceptive practices, including falsely representing individuals such as "Laura Cha" as Chairman and "Nicolas Aguzin" as Chief Executive Officer—individuals with no actual affiliations with BitCuped.
The SFC urges the public to exercise caution, especially when encountering investment opportunities and advice on social media platforms and instant messaging apps. Against the backdrop of a global regulatory push to safeguard investors in the cryptocurrency and virtual asset space, this warning serves as a timely reminder for vigilance and prudence.
As cryptocurrency-related frauds continue to pose threats globally, the SFC emphasizes the crucial need for due diligence and verification of the legitimacy of entities before engaging in any financial transactions. This cautionary stance aligns with a broader commitment to shielding investors from potential risks, especially in the aftermath of Hong Kong's recent encounter with the JPEX scandal, which unfolded as a substantial crypto fraud ballooning up to $200 million. In a rapidly evolving digital landscape, staying informed and vigilant remains the investor's best defense.
