Cryptocurrency – Online Scams – Hong Kong

s1.      Multiple complaints have been made to the police about a specified cryptocurrency exchange trading in virtual assets.  The exchange had allegedly made false claims on its trading platform of the easy accumulation of substantial riches without risk and that it had licences from overseas regulators as well as offering high returns on savings products.

The platform further placed its reliance on misleading statements made by social media influencers.  Extending into more serious waters is a potential finding confirmed by the regulator in Hong Kong that this platform did not have any kind of authorising licence to approach potential investors.  The hope is that the police can identify the promoters/proprietors of the cryptocurrency trading platform and take appropriately possible action through the criminal courts leaving the multitude of hapless “investors” with the right to civil claims although with little hope of success.

2.      A further current scam involves online advertisements placed to lure people to a cryptocurrency trading platform clearly and patently stated to be associated with well-known personalities in Hong Kong even extending to illustrations of serving government officials with public outreach of persuasive intent. 

Attributed to these officials was alleged quotation of a broadcast interview in Hong Kong where the target of the interview was stated to have vouchsafed confidential processes which were labelled as “confidential” but bound to generate millions of dollars of income within a short time as a false statement of puffery. 

The quotation further stated that the trading platform concerned had helped common people in Hong Kong, China and North America to become wealthy overnight.  Complaints have certainly been lodged both with the Securities and Futures Commission and with the police and one can only hope that well informed police information will enable successful prosecution of such approaches to be put in hand even if the funds paid over by “investors” cannot be returned.