The Hong Kong Securities and Futures Fee (SFC), alongside the native Police pressure, has issued a warning concerning a fraudulent entity posing because the outstanding cryptocurrency alternate MEXC. The imposter is allegedly deceiving potential buyers and siphoning funds.
In a current statement, the Hong Kong SFC emphasised it’s collaborating with the Police pressure in a joint operation as a part of its broader efforts to monitor and investigate digital asset buying and selling suppliers (VATP) participating in illicit actions.
The regulator alleged that the fraudulent entity working below the title ‘MEXC’ is tricking buyers into depositing funds into its checking account for supposed investments, solely to search out difficulties when trying to withdraw the funds afterward.
“On these discussion groups, victims excited about shopping for cryptocurrencies have been referred to web sites operated by MEXC. Victims have been then requested to deposit funds into designated financial institution accounts for funding functions however after that they reported difficulties with fund withdrawal.”
Moreover, the SFC recognized eight web sites suspected to be related to the fraudulent entity. All of those web sites comprise “MEXC” of their domains, comparable to “mexczx.icu” and “mexczx.co.”
“The general public ought to beware of internet sites with related domains which can be repeatedly created by MEXC,” the assertion famous.
It was solely in September 2023 that the SFC stated it could publish a listing of licensed, deemed licensed, closing down, and application-pending digital asset buying and selling platforms (VATPs), to assist the general public establish potentially unregulated VATPs in Hong Kong.
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This comes amid rising scrutiny over the enforcement choices made by the true alternate MEXC in current instances.
In December 2023, Cointelegraph reported that MEXC allegedly froze several traders’ accounts and seized their funds. The alternate claims the actions have been motivated by “irregular buying and selling actions.”
On X, the pseudonymous dealer Vida even alleged that he misplaced $92,000 in Tether (USDT) tokens, following income from a number of current trades over 15 days in MEXC’s futures market.
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