Hong Kong police have initiated an investigation into crypto trading platform Hounax following reports from 131 individuals who collectively claim losses of HK$120 million ($15.4 million) in an alleged scam.
Victims, ranging from 19 to 78 years old, were lured into investing in cryptocurrencies through the platform. Upon attempting to withdraw funds, investors found themselves unable to do so.
The police have vowed to make arrests soon. The Securities and Futures Commission had earlier listed Hounax as a suspicious virtual asset trading platform, stating that it targeted Hong Kong investors with false claims of collaboration with financial institutions and venture capital firms.
In response, a Hong Kong lawmaker has called for more proactive measures from the SFC to identify unlicensed crypto trading platforms promptly and mitigate risks.
