Hong Kong SFC Warns Against Crypto Entities HongKongDAO and BitCuped for Suspected Fraud

blockchain.news:

A substantial warning has been issued by the Securities and Futures Commission (SFC) of Hong Kong against two cryptocurrency firms, namely Hong Kong Digital Research Institute (commonly known as HongKongDAO) and BitCuped, both of which are accused of engaging in fraudulent operations.

In conjunction with the Hong Kong Police Force, the Special Frontiers Command (SFC) has taken the initiative to restrict access to the websites of the aforementioned companies. In order to protect investors and prevent any possible investment frauds from occurring, this urgent measure has been taken.

During the course of the investigation into HongKongDAO, it was discovered that the company may have been spreading misleading material on the internet. This information may have included false claims that it had obtained licenses and authority to engage in activities that are regulated. It was especially troubling that HongKongDAO was promoting the HKD token since it seemed to be an effort to lure investors under the pretext of a real opportunity. For this reason, the advertising was extremely concerning.

It was found that the website of BitCuped included major misrepresentations, including the misleading assertion that it was affiliated with top Hong Kong authorities Laura Cha and Nicholas Aguzin. It was determined that the information that was provided about their executive responsibilities was very misleading and had the potential to mislead prospective investors about the authenticity and validity of BitCuped Corporation.

In addition to these two companies, the SFC has issued a warning that encompasses additional platforms that are used for trading virtual assets. In addition, organizations such as JPEX and Hounax have been recognized