The Hong Kong Securities and Futures Commission (SFC) has raised a red flag regarding a suspected fraudulent scheme masquerading as the popular cryptocurrency exchange MEXC. This alert follows a collaborative effort between the SFC and local law enforcement to uncover illicit activities within the realm of virtual asset trading platforms (VATPs).
SFC Raises Alarm Over Suspicious Trading Platform
On February 9, the SFC issued a warning to crypto enthusiasts and investors about a dubious trading platform operating under the name “MEXC.” Through a joint investigation with Hong Kong police, the securities regulator unearthed that this entity had enticed multiple investors to join group chats under the guise of offering “free investment advice.”
Utilizing these channels, “MEXC” persuaded unsuspecting individuals to deposit funds through fraudulent websites for purchasing cryptocurrencies. Allegedly, the platform provided bank account details to victims for supposed investment purposes, but post-investment, users encountered difficulties withdrawing their funds.
The SFC has categorically identified “MEXC” as part of its “Suspicious virtual asset platforms,” cautioning individuals against engaging with such entities. Furthermore, the regulator has listed all associated website domains and emphasizes the importance of exercising vigilance against investment schemes that seem too good to be true.
In response to the SFC’s alert, MEXC, a reputable cryptocurrency exchange, has distanced itself from the fraudulent platform under investigation. In a statement posted on Saturday, MEXC urged users to steer clear of such counterfeit platforms, reiterating that its sole official website is mexc.com.
Established in 2018, MEXC boasts a significant global presence, serving over 10 million users across 170 countries. However, this recent development adds to a series of controversies surrounding the Seychelles-based exchange. In December 2023, reports emerged accusing the platform of manipulating its order book and facing criticism for allegedly locking investors out of their accounts and seizing their assets.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.