Hong Kong’s Securities and Futures Commission blacklists, blocks access to 2 cryptocurrency websites suspected of scamming investors
- Websites HongKongDAO and BitCuped placed on alert list after they were suspected of spreading false information, SFC says
- HongKongDAO sold a digital token named ‘HKD’ and falsely claimed to have applied for operating licences
Hong Kong’s securities watchdog has blacklisted and blocked access to two cryptocurrency websites suspected of scamming investors using false claims, after it was recently accused of acting too slowly in alerting victims who allegedly lost more than HK$1.6 billion through two fraudulent platforms.
Securities and Futures Commission (SFC) director of enforcement Damon Cheng Tak-ka on Wednesday said the two websites – HongKongDAO and BitCuped – were placed on its alert list after they were suspected of spreading false information about themselves and their business.
The SFC, which received a tip-off from a source, found HongKongDAO had sold a digital token named “HKD” and claimed to have applied for operating licences with the commission and the government.
Cheng said the website’s claims were false and that the SFC had placed it on its alert list on November 24.
“Through the help of police, the SFC asked internet service providers to block the website and also issued a cease and desist letter to trading platforms to stop trading tokens issued by HongKongDAO,” he said.
The watchdog found that HongKongDAO operated two chat groups, one in Chinese with more than 10,000 members and the other in English with over 1,700 people, and had touted the HKD token as having a high market value to attract investors.
“Once you press the ‘buy’ button on the website, it will divert people to another site for payment,” Cheng said.
