SFC Raises Red Flag on Suspected MEXC Impersonator
The Hong Kong Securities and Futures Commission (SFC) has uncovered a fraudulent platform masquerading as the popular cryptocurrency exchange MEXC. This discovery is the result of a joint operation between the SFC and the Hong Kong police to expose illicit activities in virtual asset trading platforms (VATPs).
SFC Warns of Fraudulent Trading Platform
The SFC issued an alert on February 9, cautioning crypto enthusiasts and investors about an ambiguous trading platform operating under the name “MEXC.” Investigations revealed that this platform lured unsuspecting investors into group chats, promising “free investment advice.” Through these chats, the platform directed victims to deposit funds through fraudulent websites to purchase cryptocurrencies.
The suspected entity provided bank accounts for investment purposes, but victims faced difficulties in withdrawing their funds after investing. The SFC has listed “MEXC” as a “Suspicious virtual asset platform,” citing fraudulent activities.
MEXC Denounces Imposter
In response to the SFC’s announcement, the genuine MEXC cryptocurrency exchange clarified that the trading platform under investigation is a counterfeit with no connection to its official operations. MEXC advised users to avoid interacting with such fraudulent platforms, emphasizing that its only official website is mexc.com.
MEXC’s Controversies
MEXC, launched in 2018, ranks among the top global crypto trading platforms, with over 10 million users worldwide. However, this latest incident adds to a series of controversies surrounding the Seychelles-based exchange. In December 2023, MEXC faced accusations of fabricating its order book and allegedly locking investors out of their accounts and seizing their assets.
Investor Vigilance
The SFC urges Hong Kong citizens to be wary of investment schemes that appear too good to be true. The regulator emphasizes the need for vigilance in making financial decisions and encourages investors to conduct thorough research before engaging in any investment activity.
