Hong Kong SFC Issues Warning Against Fake MEXC Domains

The Hong Kong Securities and Futures Commission (SFC) and the regional police have issued a warning against a fraudulent entity that is posing as a fake version of the centralized crypto exchange MEXC, which was founded in 2018. 

As reported earlier by TheCoinRise, recent warnings were issued to investors in memecoin Dogecoin (DOGE). Certain fraudulent projects were utilizing the canine-inspired cryptocurrency’s brand and reputation to deceive unsuspecting investors into parting with their funds.

Additionally, the Federal Bureau of Investigation (FBI) also issued a warning against illicit players in the NFT and crypto ecosystems that seek to scam investors.

Hong Kong SFC Warns Investors

The Hong Kong regulator stated that the entity responsible for the fake MEXC exchange is allegedly deceiving potential investors and siphoning funds.

“MEXC is suspected to have enticed victims to join social media or instant messaging chat groups on the pretense of offering free investment advice. On these chat groups, victims interested in buying cryptocurrencies were referred to websites operated by MEXC. Victims were then asked to deposit funds into designated bank accounts for investment purposes, but after that, they reported difficulties with fund withdrawal,” read the warning.

Monitoring Illicit Activities in the Crypto Sector

The Hong Kong SFC noted that it is currently engaged in monitoring and investigating virtual asset trading providers (VATP) that are involved in illicit activities in collaboration with the regional police force. 

The regulator has warned that the entity is manipulating investors and tricking them into depositing funds into its bank account for supposed investments. However, when the customers try to withdraw the funds, they are faced with difficulties and eventually lose their funds. 

SFC Identifies 8 Websites

The Hong Kong regulator has confirmed eight websites that are part of this illicit scheme where investors are losing their hard-earned money. These websites contain “MEXC” in their domain names, such as “mexczx.icu” and “mexczx.co.”

“The public should beware of websites with similar domain names which may be continuously created by MEXC,” read the warning from the agency.

Hong Kong Regulator Focuses on Crypto

The Hong Kong SFC is currently focused on the digital asset sector, recently issuing a public warning regarding the risks associated with investment products known as “Floki Staking Program” and “TokenFi Staking Program.”

The regulator also stated that it is ready to embrace the world of cryptocurrency exchange-traded funds (ETFs) and has reviewed the nation’s policy for players involved in virtual-asset-related activities. Notably, Hong Kong is now open to applications from traditional financial firms looking to create spot crypto ETFs.

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