The Securities and Futures Commission (SFC) of Hong Kong has issued a warning regarding suspected fraudulent activities.
The Securities and Futures Commission (SFC) of Hong Kong has issued a warning regarding suspected fraudulent activities associated with crypto entities Hong Kong Digital Research Institute (also known as HongKongDAO) and BitCuped.
In a notice released on December 6, the SFC disclosed that the Hong Kong Police Force had taken action to block access to the websites of BitCuped and Hong Kong Digital Research Institute, citing concerns that users could be deceived into making illegitimate investments. The regulatory body has also sent cease-and-desist letters to the operators of these websites.
According to the SFC notice, there are suspicions that HongKongDAO may be disseminating false and misleading information about its business through online channels. It further pointed out that BitCuped falsely claims on its website that "Laura Cha" and "Nicolas Aguzin" hold the positions of Chairman and Chief Executive Officer, respectively, whereas neither of them has any affiliation with BitCuped. In reality, Cha and Aguzin are executives with the Stock Exchange of Hong Kong, unrelated to BitCuped.
The SFC emphasized that the misleading information associated with HongKongDAO could potentially mislead individuals into believing that its services are properly licensed and legitimate, thereby encouraging investments in the HKD token. The securities regulator intends to address this issue to protect investors from potential fraud.
This comes as two crypto exchange scandals hit Hong Kong, with JPEX causing $205 million in losses and Hounax defrauding victims of $18 million. However, the SFC decided to keep the grace period of one year, and crypto exchanges operating within Hong Kong will be required to obtain a virtual asset service provider license by June 2024.
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