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Hong Kong’s Securities and Futures Commission (SFC) and local law enforcement have jointly issued a public warning against an entity masquerading as crypto exchange MEXC Global.
The scammers are reportedly pretending to be a legitimate virtual asset trading platform (VATP) and luring unsuspecting victims into participating in what appears to be a crypto investment scam.
The list of blocked web domains included in the alert shows the scammers are using links with addresses that start with “mexc” and end in random alphabets akin to phishing links.
MEXC Global’s actual website does not appear in the list as of press time.
The SFC has placed MEXC and its associated websites on the Suspicious Virtual Asset Trading Platforms Alert List as of Feb. 9, following intelligence shared between the SFC and the police under a joint working group focused on monitoring and investigating illegal activities in the virtual asset space.
Victims were reportedly drawn into social media or instant messaging chat groups under the guise of receiving free investment advice, only to be directed to MEXC-operated websites for crypto purchases. Subsequently, these individuals were prompted to deposit funds into specific bank accounts for investment purposes, facing difficulties when attempting to withdraw their funds later.
The Hong Kong Police have taken steps to block access to websites operated by MEXC. However, there is an ongoing concern that MEXC may continue to create new websites with similar domain names to perpetuate their fraudulent scheme. The public is urged to exercise caution and remain vigilant against such deceptive practices.
The SFC’s repeated warnings emphasize the importance of due diligence and the need for investors to be wary of “too-good-to-be-true” investment opportunities, especially those promoted through social media platforms and instant messaging apps.
The regulatory body said that fraudulent, unlicensed platforms often adopt names similar to legitimate entities to mislead investors. The public is advised to verify the legitimacy of virtual asset trading platforms before engaging in any investment activities to safeguard against potential fraud.
The warning against MEXC comes amidst a broader regulatory crackdown on unlicensed crypto operations in Hong Kong following the introduction of a regulatory framework for licensing crypto exchanges last year.
The SFC recently reminded entities engaged in crypto exchange services to apply for licenses by Feb. 29 or cease operations by May 31. To date, Hong Kong has issued licenses to two platforms under the new framework — HashKey and OSL.
Additionally, Hong Kong authorities have launched a public consultation on legislative proposals aimed at implementing a comprehensive licensing regime for providers of over-the-counter virtual asset trading services.
This initiative seeks to mandate licensing requirements for entities offering spot trading services for virtual assets and proposes extending the oversight of the Commissioner of Customs and Excise (CCE) to encompass all over-the-counter virtual asset services. This includes monitoring licensees’ compliance with anti-money laundering and anti-terrorist financing standards.
The U.S. State Department is warning U.S. citizens around the world to exercise caution as tensions are on the rise in the Middle East, and telling Americans to “stay alert” in areas frequented by tourists.
With the Israel-Hamas war intensifying, the U.S. government issued a “Worldwide Caution” alert on Thursday.
“Due to increased tensions in various locations around the world, the potential for terrorist attacks, demonstrations or violent actions against U.S. citizens and interests, the Department of State advises U.S. citizens overseas to exercise increased caution,” the notice reads.
The State Department advises Americans to:
The Israel-Hamas war was touched off by an attack by Hamas on Oct. 7.
More than 1,400 Israelis have died since the Hamas assault began, according to Wall Street Journal reporting. In Gaza, officials said the Palestinian death toll was more than 3,785, including the 471 people they said were killed in a hospital blast on Tuesday.
Oil prices
CL.1,
on Thursday settled higher amid fear about an expansion of the Israel-Hamas war, as MarketWatch reported.
The Israeli shekel
USDILS,
fell for an eighth straight session on Thursday, hitting its weakest level against the dollar since 2015.
President Joe Biden is scheduled to give an Oval Office address Thursday night about U.S. support for Israel and Ukraine. The president is expected to ask Congress to approve about $10 billion in military aid to Israel and some $60 billion for Ukraine.
The Vermont Department of Financial Regulation (DFR) — the United States state of Vermont’s financial regulatory agency — warned citizens against rising crypto investment frauds perpetrated over popular social media sites.
On June 25, 74-year-old Naum Lantsman lost his life savings of $340,000 to a crypto scam orchestrated over Instagram and Telegram. The DFR referenced the incident as it emphasized “the need for Vermonters to exercise extreme caution and vigilance when using or investing in cryptocurrency.”
Instagram has been rated as the top platform connected to crypto fraud by the Federal Trade Commission (FTC), which is also true for Lantsman. His initial contact with the crypto scammer happened over Instagram, wherein he came across a post from SpireBit claiming to be an “international financial broker” dealing in cryptocurrencies.
Without any form of investigation or research about the platform, Lantsman created an account on SpireBit. A Spirebit representative contacted Lantsman over Telegram and, over several days, coerced him into making investments.
What started as a $500 investment ultimately resulted in a more than $340,000 loss. Once a user invests on fake platforms like SpireBit, the dashboard shows profits on every trade, which encourages investors to shell out more of their savings.
Lantsman had heard about crypto scams in the past but never expected himself to become a victim of the crime. Vermont DFR blames the rising crypto scams on the con artists that devise “more complex, personalized tactics” with layers of deception.
From forging bank documents and statements to having friendly conversations, scammers’ ever-evolving techniques can be tackled through vigilance and background checks.
Vermonters have been asked to report fraud in a timely manner to help reduce financial damage and track down criminals.
Related: Five US enforcement agencies form new digital currency anti-crime task force
Eun Young Choi, director of the U.S. Justice Department’s National Cryptocurrency Enforcement Team, said that decentralized finance hacks were a “pretty significant issue,” given the rise of North Korean “state-sponsored hackers.”
Justice Department Announces First Director of National Cryptocurrency Enforcement Teamhttps://t.co/PvJ6iRDQ8P
— Justice Department (@TheJusticeDept) February 17, 2022
Choi also reaffirmed that the Justice Department is after crypto firms that either commit the crime or turn a blind eye to “obscure the trail of transactions.“
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Magazine: US enforcement agencies are turning up the heat on crypto-related crime