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Hong Kong Securities and Futures Commission Alerts Public Regarding Fake Websites Impersonating MEXC

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By Edith Muthoni

Updated Feb 12, 2024

Hong Kong authorities have issued a stark warning about a fraudulent scheme masquerading as the reputable exchange MEXC. The sophisticated scam targets cryptocurrency investors, raising alarms across the financial community. The group has cunningly enticed victims through social media channels, draining their investments.

The Hong Kong Securities and Futures Commission (SFC) and the Police Force have issued an alert about this scheme. The scammers have infiltrated chat groups where cryptocurrency enthusiasts gather, pretending to be representatives from MEXC.

Later, they direct individuals to websites resembling the real MEXC platform. Unaware victims, thinking they are investing in cryptocurrency, deposit their funds into bank accounts controlled by the scammers. However, they find themselves trapped in a web of deception when attempting to retrieve their investments.

Authorities have identified eight websites with domain names resembling MEXC, like “mexczx.icu” and “mexczx.co.” These websites act as gateways for the scheme, making it even harder to distinguish between illegitimate platforms. 

SFC said it published a list of licensed, deemed licensed, closed down, and application-pending virtual asset trading providers (VATPs) to help the public spot unregulated VATPs in Hong Kong. They encourage investors to consult their list before engaging with any platform.

The regulator emphasizes that they continue working on identifying and regulating (VATPs) operating in Hong Kong.

MEXC’s Response and Advisory to Users

This incident comes at a time when there is increased scrutiny regarding MEXC enforcement actions. In December 2023, reports showed that the exchange had frozen user accounts and confiscated funds, claiming they were due to ” abnormal trading activities.” These incidents raise concerns about how transparent and accountable the platform is, emphasizing the need for investor due diligence.

On X, the pseudonymous trader Vida lost $92,000 in Tether (USDT) after engaging in futures market trades on MEXC. His interaction with MEXC’s support team revealed a startling fact. Vida discovered the complete depletion of funds and order history the following day. He shared screenshots, confirming MEXC’s awareness of the flagged trades and their ongoing investigation.

MEXC Issues Condemnation Against Impersonators

MEXC, the exchange in question has taken measures to clarify its position and condemn the imposters. They emphasize their dedication to maintaining a reliable trading environment for their users. MEXC advises its community to trust its website, mexc.com, and remain cautious about interacting with fraudulent platforms.

The collaboration between the Hong Kong SFC and law enforcement in addressing activities demonstrates a robust regulatory approach against crypto fraud. This reflects a trend of bodies taking proactive steps to safeguard the integrity of the virtual asset market and protect investors from potential scams.

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