A fake cryptocurrency, the “National Hong Kong Coin” (HKONG), was promoted on X (formerly Twitter) by an account pretending to be Hong Kong’s Chief Executive, John Lee Ka-chiu. This cleverly disguised scam used Solana’s Pump.fun launchpad and targeted the recent surge in popularity of political memecoins.
The Scam Unveiled
The imposter account, “@JohnLeeKa_Chiu,” announced the HKONG, claiming it was a “strategic step” towards digital innovation. The post, since deleted, promised a launch time, which was later postponed. Adding to the deception, the imposter interacted with high-profile accounts like those of Donald Trump and Narendra Modi, even thanking Dave Portnoy for his supposed help with the launch. The account’s gray verification checkmark, indicating a government or organization affiliation, added a layer of believability to the scheme.
Government Denial and Warnings
Hong Kong’s government swiftly denied any involvement, with John Lee’s official Facebook page explicitly stating the cryptocurrency was fake and designed to defraud investors. Legislator Johnny Ng also issued a public warning, urging people to be cautious. The government stressed the importance of verifying information to avoid scams.
The Aftermath and Security Concerns
The incident highlighted serious security flaws on X. The impersonator likely hacked an Indian official’s account, changing the details to pull off the scam. After the failed attempt, the account deleted all related posts and changed its username, suggesting the hackers retained control.
The scam’s limited success was attributed to the slow launch and lack of a quickly released contract address, allowing investors to spot red flags. The HKONG’s market cap only reached $200,000 before collapsing.
The Bigger Picture: Political Memecoins and Regulation
This event fueled concerns about the broader trend of political memecoins and their potential for abuse. The Central African Republic and Argentina’s experiences with similar tokens were cited as examples of the damage these can cause. The US House of Representatives’ proposed MEME Act, aiming to prevent federal officials from promoting financial assets that could benefit them personally, reflects growing concerns over this issue. The TRUMP and MELANIA memecoins are also mentioned as examples of the risks involved.
