Hong Kong Officials Warn Against Fake Crypto Exchange Posing as MEXC Global

The Securities and Futures Commission (SFC) of Hong Kong, along with the jurisdiction’s police force, have collaborated to distribute a warning to the public about a fraudulent entity posing as the cryptocurrency exchange, MEXC Global.

This deceptive scheme involves imposters claiming to be a recognized virtual asset trading platform (VATP), with the intent of deceiving individuals into a fallacious crypto investment ploy.

An alert list of obstructed web domains encompasses URLs that initiate with “mexc” and terminate with a string of random characters, resembling typical phishing links.

It is noted that the official website of MEXC Global is not listed among these dubious web addresses at the time of this announcement.

Fraud warning

As of February 9, the SFC added MEXC and associated sites to a watchlist of Suspicious Virtual Asset Trading Platforms, propelled by intelligence cooperation between the SFC and law enforcement through a specialized task force targeting illegal virtual asset activities.

These scammers have lured victims via social media and chat applications with the false pretense of providing complimentary investment advice, only to direct them to MEXC-managed websites for cryptocurrency transactions. Victims who transferred funds to specified bank accounts for purported investments encountered impediments when trying to reclaim their money.

To thwart these deceptions, the Hong Kong Police have taken measures to restrict access to MEXC managed websites, yet concerns linger about the possibility of new fraudulent domains being established. The populace is encouraged to be circumspect and alert to such deceptive tactics.

The SFC has repeatedly alerted the public, underscoring the need for thorough due diligence and caution around investment offers that seem implausibly advantageous, particularly those promoted via social media and messaging applications.

The authority further indicated that illegitimate, unauthorized platforms often utilize names mimicking legitimate businesses to fool investors, and advises the public to authenticate the authenticity of virtual asset trading platforms before initiating investments to prevent fraud.

Regulatory crackdown

Amidst tighter scrutiny of unauthorized cryptocurrency enterprises in Hong Kong, the SFC’s warning coincides with a larger regulatory initiative that enforces a licensing structure for crypto exchanges initiated the previous year.

The SFC has recently informed crypto service entities of the obligation to secure licenses by February 29 or discontinue operations by May 31. Under this framework, Hong Kong has so far licensed two entities — HashKey and OSL.

Furthermore, Hong Kong’s authorities have commenced a public consultation regarding proposed laws to instate a comprehensive licensing system for over-the-counter virtual asset trading service providers.

This proposal aims to enforce licensing prerequisites for firms facilitating spot trading of virtual assets and suggests broadening the purview of the Commissioner of Customs and Excise (CCE) to include all aspects of over-the-counter virtual asset services, checking adherence to anti-money laundering and counter-terrorism financing standards.