Hong Kong’s Crypto Chaos

The anonymous makers of an unlicensed crypto exchange in Hong Kong purportedly made off with $19 million, leaving platform users in the lurch and the digital-assets-friendly city managing its second major crypto detraction in barely two months.

Some 145 individuals were affected by a hack of the Hounax exchange since Tuesday, according to authorities, and now Hong Kong’s variation of the SEC, the Securities and Future Payment, is running the gauntlet that it’s been too lax in its method toward crypto.

Hounax tempted in retail investors using social media sites with insurance claims that it was cofounded by the original Coinbase technological team and had a Canadian Cash Provider Business permit. The exchange also claimed it was courting investments from Sequoia Capital and IDG Funding, yet in very early November the SFC designated it a questionable system and advised financiers to steer clear.

The Hounax application supposedly showed boosting equilibriums to investors who made deposits, but police authorities who talked to local media electrical outlets exposed that the funds had already been diminished.

Although crypto trading is outlawed in landmass China, Hong Kong increasingly has welcomed electronic properties, introducing a licensing scheme in June and allowing for some types of crypto trading.

The Hounax hack follows more than $120 million went away from the unlicensed JPEX crypto exchange in September. Since then, 66 people have actually been jailed in connection with the situation, consisting of influencers such as Joseph Lam and JPEX staff members.

Legislators in Hong Kong have expressed their frustration with the SFC for not taking more powerful actions to prevent these deceptive tasks. Doreen Kong Yuk-foon, a legislator from the Election Board, specified that the crypto regulator in Hong Kong should have stepped in faster and must close down unregulated exchanges to safeguard financiers instead of leaving them to fend for themselves, as reported by the Requirement.

And Hong Kong Chief Executive John Lee Ka-chiu said on Tuesday that the “federal government will actively coordinate” if the SFC needs even more power to crack down on unregulated exchanges like Hounax.


Disclaimer: Not Investment Advice

it’s crucial to understand that the information provided here is not to be construed as investment advice. The crypto market is dynamic and highly speculative, and decisions should be made based on thorough personal research and consideration of individual risk tolerance. Always consult with financial professionals and conduct your own due diligence before making any investment decisions. The intention of this exploration is to present insights and trends, not to provide specific investment recommendations.

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