Hong Kong Regulator Stifles Suspected Crypto Frauds

Hong Kong Regulator Stifles Suspected Crypto Frauds

By: Eva Baxter

The Securities and Futures Commission (SFC) of Hong Kong has taken strict measures against two crypto entities who are suspected of fraudulent activities. The entities, Hong Kong Digital Research Institute and BitCuped, have faced a blockage of their websites within the country on the order of the SFC. A cautionary statement issued by SFC highlighted that the entities could be luring innocent investors into false investments thereby promoting scam activities.

The SFC has suspected that HongKongDAO, another name for the Hong Kong Digital Research Institute, has been spreading false and misleading information about its business and itself through their online platforms. Another entity, BitCuped, has purportedly provided incorrect information by claiming that certain officials, 'Laura Cha' and 'Nicolas Aguzin', are serving the firm in the capacity of Chairman and Chief Executive Officer, respectively when they have no known affiliations.

Besides the website blockage, the SFC has also issued cease-and-desist letters to the website operators of these firms demanding a halt in their operations. It has been alleged that these sites were promoting the HKD token, an offer deemed illegal due to the absence of necessary permissions. The SFC remarked that the operations of such firms can be assessed and approached by potential investors outside the boundaries of Hong Kong.

In the backdrop of Hong Kong's recent clampdowns on cryptocurrency frauds, the SFC's move reinforces their commitment to safeguarding investors' interests and maintaining the integrity of their markets.

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