Hong Kong authorities reported on Nov. 27 that 145 users were affected in a scam by the unlicensed cryptocurrency exchange Hounax, resulting in a loss of 148 million HKD ($18.9 million), according to local media Shenzhen Commercial News.
On Nov. 25, local police held an initial press conference to inform the Hounax platform of the reports. The Hong Kong Securities Regulatory Commission (SFC) said that as of the 27th, they received 18 complaints about exchange regarding amounts ranging from 12,000 HKD to 10 million HDK ($1,539- $1.2 million).
According to local police, Hounax claimed to be a licensed platform that cooperated in line with legal financial institutions, although on Nov. 1 the SFC listed it as a suspicious platform and cautioned users over its risks.
Hounax allegedly recruited local customers via claims it was founded by the original Coinbase technical team, it had a license from Canadian authorities, and it was considering investments from big names like Sequoia…