Hong Kong SFC Issues Alert on Fake MEXC Crypto Exchange, Warns of Fraudulent Activity

The Hong Kong SFC and local police uncover imposter websites deceiving investors under the guise of MEXC.

The Hong Kong Securities and Futures Commission (SFC), in collaboration with local law enforcement, has issued a warning about a deceptive entity masquerading as the cryptocurrency exchange MEXC. The imposter is allegedly defrauding potential investors and illicitly obtaining funds.

In an official statement, the SFC revealed its joint operation with the police, part of a broader initiative to monitor and investigate virtual asset trading providers (VATPs) involved in illicit activities.

The regulator alleges that the fraudulent entity operating under the name MEXC is luring investors into depositing funds into its bank account for supposed investments, only for them to encounter difficulties when attempting to withdraw the funds later.

“On these chat groups, victims interested in buying cryptocurrencies were referred to websites operated by MEXC. Victims were then asked to deposit funds into designated bank accounts for investment purposes but after that, they reported difficulties with fund withdrawal.”

Additionally, the SFC has identified eight websites suspected of being associated with the fraudulent entity, all incorporating MEXC into their domain names, such as "mexczx.icu" and "mexczx.co."

"The public should beware of websites with similar domain names which may be continuously created by MEXC," the statement warns.

This development follows the SFC's September 2023 announcement that it would publish a list of licensed, deemed licensed, closed down, and application-pending VATPs to help the public identify potentially unregulated VATPs in Hong Kong.

This alert comes amid heightened scrutiny of enforcement decisions by the legitimate MEXC exchange. In December 2023, reports surfaced that MEXC allegedly froze several traders' accounts and seized their funds, citing "abnormal trading activities" as the motivation. The exchange's actions drew criticism, with traders, including the pseudonymous trader Vida, claiming significant losses, such as $92,000 in Tether tokens following profits from recent trades in MEXC's futures market.

(Photo Source / Blockonome)