Hong Kong Police and SFC are doing an investigation into Hounax (unlicensed cryptocurrency exchange) because they apparently did a rug pull, leaving users of the exchange without their assets. After the arrest of individuals associated with the JPEX cryptocurrency fraud, this virtual asset trading platform based in Hong Kong has been involved in fraudulent activities. Local reports is indicating that the Hong Kong Police have received reports from 145 victims, with an estimated total loss of around HK$148 million. 



This is because in November, authorities in Taiwan caught multiple individuals connected to the JPEX exchange controversy, which resulted in a loss of nearly $213 million. The inquiry into JPEX is ongoing, with Taiwanese celebrities also being under investigation for their involvement as brand ambassadors for the exchange. Following the JPEX incident, regulatory authorities in Hong Kong have been tightening their grip on cryptocurrency regulations, a trend people think will escalate in light of the recent allegations against Hounax.

As commonly seen, once again scammers on social media are trying to trick people affected by this that they can help them to retrieve their funds. In reality, they are just trying to hunt down desperate people to scam them a second time. Stay safe!