Hong Kong Police Receive 145 Complaints of Hounax Crypto Scam Totaling $18.9M
Authorities in Hong Kong have confirmed that 145 individuals filed complaints regarding losses from an unlicensed cryptocurrency exchange called Hounax. Police report the total losses amount to around $18.9 million.
Earlier this month, the Hong Kong Securities and Futures Commission (SFC) cautioned users about the suspicious trading platform. According to authorities, Hounax falsely claimed to have licenses and backing from legitimate financial institutions.
On November 25th, Hong Kong police held a press conference announcing the complaints against Hounax. They revealed that as of November 27th, 18 people had come forward reporting losses ranging from $1,539 to $1.2 million HKD (Hong Kong dollars).
Inspectors said Hounax recruited unsuspecting crypto traders through social media and messaging apps. The scam prompted victims to invest in virtual currencies through the Hounax app with promises of high returns.
Hong Kong fails to prevent Hounax scam, leaving investors fuming –
Residents in Hong Kong have reportedly fallen victim to a suspected cryptocurrency scam involving the Hounax platform, with reported losses totaling HK$148 million (US$19 million). The victims argue that the … pic.twitter.com/Gs6vR1iLep
— The Industry Spread (@industryspread) November 27, 2023
According to inspectors, the moment victims transferred funds to Hounax, the money was siphoned away. Withdrawal attempts were rejected or met with demands for verification fees of up to 80% of the original funds.
The reported losses from all 145 Hounax users now total around 148 million HKD, equivalent to $18.9 million USD. Police say the victims range in age from 19 to 78 years old.
The largest reported individual loss belonged to a 69-year-old retired woman who
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