SFC warns about crypto exchange imposter posing as MEXC

The Hong Kong Securities and Futures Commission (SFC) and the local Police force have issued a warning about a fraudulent entity that is posing as the popular cryptocurrency exchange MEXC. This imposter is allegedly deceiving potential investors and taking their money. The SFC and the Police are working together in a joint operation to monitor and investigate virtual asset trading providers (VATPs) involved in illicit activities.

According to the SFC, the fraudulent entity operating under the name ‘MEXC’ is tricking investors into depositing funds into its bank account for supposed investments. When investors try to withdraw their funds, they encounter difficulties. The SFC identified eight websites that are suspected to be associated with the fraudulent entity, all of which have “MEXC” in their domain names.

The SFC has urged the public to be cautious of websites with similar domain names, as there is a possibility that more websites might be created by the fraudulent entity. This warning comes after the SFC announced in September 2023 that it would publish a list of licensed and unlicensed virtual asset trading platforms in Hong Kong to help the public identify potentially unregulated platforms.

This incident raises concerns about the enforcement decisions made by the real exchange MEXC. In December 2023, it was reported that MEXC froze several traders’ accounts and seized their funds, citing “abnormal trading activities” as the reason. A trader named Vida claimed to have lost $92,000 in Tether tokens following profitable trades on MEXC’s futures market.

This warning from the SFC serves as a reminder for investors to be cautious and do thorough research before depositing funds into any virtual asset trading platform. It is crucial to verify the legitimacy of the platform and ensure that it is licensed and regulated by the appropriate authorities.

The SFC’s collaboration with the local Police force demonstrates their proactive approach in monitoring and investigating fraudulent activities in the cryptocurrency market. By working together, they aim to protect investors and maintain the integrity of the financial markets.

Investors should remain vigilant and report any suspicious activities to the authorities. It is also important for individuals to educate themselves about the risks and challenges associated with cryptocurrency trading to make informed investment decisions.