Hong Kong’s SFC Issues Fraud Warnings for HongKongDAO and BitCuped

Hong Kong’s SFC Issues Fraud Warnings for HongKongDAO and BitCuped

by December 7, 2023

The Securities and Futures Commission (SFC) has warned the public about suspected virtual asset-related frauds involving Hong Kong Digital Research Institute, also known as HongKongDAO, and BitCuped. The SFC has requested the Hong Kong Police Force block access to both companies’ websites.

Regarding HongKongDAO, the SFC said the firm may be spreading false information about itself online, including claims it has obtained licences and approval to conduct regulated activities. However, the SFC noted none of HongKongDAO’s claims about licences are accurate.

Additionally, the SFC said BitCuped has falsely claimed affiliations with senior Hong Kong officials Laura Cha and Nicholas Aguzin.

The SFC’s warning extends beyond these two firms to include other virtual asset trading platforms. One such platform is JPEX, which, despite claiming to be a licensed virtual asset trading platform with approvals from various overseas regulators, is falsely representing its credentials.

Similarly, Hounax has been identified as a potential risk targeting Hong Kong investors and claiming false business partnerships.

The SFC urges caution regarding online investment opportunities, particularly those promoted via social media and messaging platforms. Officials advise the public to research investment providers and be vigilant of fraud.