HongKongDAO

<p>In a recent move, the Securities and Futures Commission (SFC) of Hong Kong has issued a public warning against suspected virtual asset-related frauds involving HongKongDAO and BitCuped, marking a significant crackdown on deceptive practices in the crypto space.</p><p>The action taken by the SFC in conjunction with the Hong Kong Police Force was outlined in a <a href="https://www.sfc.hk/en/News-and-announcements/Policy-statements-and-announcements/SFC-warns-public_HongKongDAO-and-BitCuped_suspected-VA-frauds" rel="noopener noreferrer nofollow">notice</a> published on Wednesday. The notice stated:</p><p>“The SFC suspects HongKongDAO may be disseminating false and misleading information about itself and its business through online channels.”</p><p>In relation to BitCuped, it stated: “The SFC notes that BitCuped claims on its website that ‘Laura Cha’ and ‘Nicolas Aguzin’ serve as its Chairman and Chief Executive Officer respectively, when in fact none of them has any affiliations with BitCuped.”</p><h2 id="header-0">HongKongDAO’s alleged misinformation</h2><p>Operating under the name “Hong Kong Digital Research Institute,” HongKongDAO has faced accusations of disseminating false and misleading information. The SFC expressed concerns about the claims made by HongKongDAO, including assertions of licensing by the SFC, engagement in regulated activities since July 2020, and bids for a “Hong Kong Digital Currency Exchange Licence” related to the government’s stablecoins framework.</p><p>The SFC contends that these claims are unfounded and could potentially mislead the public into believing that HongKongDAO’s services are officially sanctioned and legitimate.</p><p>HongKongDAO seems to manage at least two Telegram groups, one in Chinese with over 10,000 members and the other in English with over 1,700 members. Within these groups, there appears to be a promotion of the purported “market” price and future market value of the HKD token, enticing investors to make purchases.</p><h2 id="header-1">Allegations of BitCuped false affiliations</h2><p>Simultaneously, BitCuped has been accused of making fraudulent claims to enhance the credibility of its operations. The company falsely asserted affiliations with prominent figures Laura Cha and Nicolas Aguzin, claiming them as its chairman and CEO, respectively. However, the SFC has refuted these affiliations. Laura Cha is the Chairman of Hong Kong Exchanges and Clearing Limited (HKEX), while Nicolas Aguzin is the Executive Director and CEO of HKEX.</p><p>Taking proactive measures, the SFC has requested the Hong Kong Police Force to block access to the websites of both HongKongDAO and BitCuped. Cease and desist letters have also been issued to the operators of these websites, demanding the cessation of the sale of HKD Tokens offered by HongKongDAO.</p><h2 id="header-2">Series of crypto scams</h2><p>Following the <a href="https://medium.com/&#64;coinness.gl/jpex-exchange-scandal-sees-crypto-regulation-under-scrutiny-in-hong-kong-e0430924ddbd" rel="noopener noreferrer nofollow">JPEX fraud</a> allegations in September, Hong Kong faced another cryptocurrency exchange scandal involving <a href="https://www.scmp.com/news/hong-kong/law-and-crime/article/3243274/hounax-scam-company-changed-website-address-more-30-times-evade-detection" rel="noopener noreferrer nofollow">Hounax</a> in November. With at least 145 police reports filed and a sum of over HK$148 million ($19 million) involved, affected investors expressed frustration at what they deemed a slow response from regulatory bodies.</p><p>These incidents have reignited discussions about the need for more robust cryptocurrency regulations in Hong Kong. The city’s aspiration to become a global hub for crypto innovation and adoption faces challenges due to a lack of clear and consistent regulation, leaving investors vulnerable to fraud and manipulation.</p><p>In light of these developments, the SFC emphasized the importance of public caution regarding investment opportunities that seem too good to be true. The regulator urged vigilance against social media and instant messaging platforms where individuals, not investment professionals, might lure unsuspecting investors.</p>

Regulatory crackdown as Hong Kong authorities act against crypto entities

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