The Hong Kong Securities and Futures Fee (SFC), alongside the native Police pressure, has issued a warning relating to a fraudulent entity posing as cryptocurrency change MEXC. The imposter is allegedly deceiving potential traders and siphoning funds.
In a latest assertion, the SFC highlighted it’s collaborating with the police in a joint operation as a part of its broader efforts to observe and examine digital asset buying and selling suppliers (VATPs) participating in illicit actions.
The regulator alleged that the fraudulent entity working below MEXC is tricking traders into depositing funds into its checking account for supposed investments, solely to search out difficulties when trying to withdraw the funds later.
“On these discussion groups, victims inquisitive about shopping for cryptocurrencies had been referred to web sites operated by MEXC. Victims had 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, corresponding to “mexczx.icu” and “mexczx.co.”
“The general public ought to beware of internet sites with comparable domains which can be constantly created by MEXC,” the assertion notes.
In September 2023, the SFC mentioned it could publish a listing of licensed, deemed licensed, closed down and application-pending VATPs to assist the general public determine probably unregulated VATPs in Hong Kong.
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This comes amid rising scrutiny over the enforcement selections made by the precise MEXC change in latest instances.
In December 2023, Cointelegraph reported that MEXC allegedly froze a number of merchants’ accounts and seized their funds. The change claims the actions had 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 latest trades over 15 days in MEXC’s futures market.
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