Hong Kong Regulator Warns of 2 Entities Suspected of Crypto Frauds

Hong Kong Regulator Warns of 2 Entities Suspected of Crypto Frauds – Hong Kong’s Securities and Futures Commission (SFC) cautioned the public about two entities believed to be engaged in virtual asset-related frauds. The regulator not only sent cease and desist letters to relevant website operators instructing them to stop offering crypto tokens but also urged the public to exercise caution regarding enticing investment opportunities and advice shared on social media and instant messaging apps.

The two entities are Hong Kong Digital Research Institute, aka Hong Kong DAO, and Bitcuped. According to the notice: “At the SFC’s request, the Hong Kong Police Force has taken steps to block access to the websites of Hong Kong DAO and Bitcuped. The SFC also issued cease and desist letters to relevant website operators requesting such websites to cease offering for purchase a token issued by Hong Kong DAO.”

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The Hong Kong DAO has released a token named HKD, accessible for acquisition on its website. The SFC has raised concerns, suspecting the entity of spreading inaccurate and deceptive information about its identity and operations through online channels. Likewise, the regulatory body highlighted false assertions by Bitcuped. 

Notably, the website falsely indicates Laura Cha and Nicolas Aguzin as its chairman and CEO, respectively, despite neither having any affiliations with Bitcuped. The Hong Kong regulator also warned investors: “Online investment scams may involve any type of assets and are perpetrated through multiple channels. Those who fall victim can suffer substantial losses.” 

The SFC advises the public to “be cautious about too-good-to-be-true investment opportunities and advice posted on social media platforms and via instant messaging apps, on which they may be lured to invest by individuals who are not investment professionals.” The regulator concluded: “Investors should stay vigilant and beware of fraud when making investment decisions.”


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