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Crime in Hong Kong
Hong KongLaw and Crime

Hong Kong police vow to make arrests after Hounax virtual asset trading platform allegedly scams 131 people out of nearly HK$120 million

  • Securities and Futures Commission listed Hounax as suspicious virtual asset trading platform early this month
  • Platform, which claimed to be run by Singaporean company, started operating early in 2023 and appeared to target Hong Kong investors, police say

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According to police, the alleged scammers would reach out to people through social media and WhatsApp, inviting them to join group chats in which “hot tips” were shared. Photo: SCMP
Emily Hung

Hong Kong police launched an investigation on Saturday after more than 130 people claimed a virtual asset exchange platform called Hounax scammed them out of nearly HK$120 million (US$15.4 million), with the force vowing to make arrests soon.

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The Securities and Futures Commission (SFC) listed Hounax as a suspicious virtual asset trading platform early this month after it was found to have lied about its ties with a financial institution and a venture capital firm.

“The scammer impersonated investment experts and lured people to invest in virtual currencies through a virtual asset trading platform with promises of high returns,” said Chan Wai-kei, superintendent of the force’s commercial crime bureau. “But when the investors went to withdraw the money, they were unable to do so.”

Police recorded more than 4,300 investment scam cases in the first nine months of this year, a 105 per cent increase over the same period last year, with HK$2.8 billion lost. Photo: Jelly Tse
Police recorded more than 4,300 investment scam cases in the first nine months of this year, a 105 per cent increase over the same period last year, with HK$2.8 billion lost. Photo: Jelly Tse

Chan said police received 88 reports from 131 alleged victims, who claimed they lost nearly HK$120 million. The youngest was 19 and the oldest 78, with a 69-year-old retired woman allegedly suffering the biggest loss of HK$12 million.

The platform, which claimed to be run by a Singaporean company, started operating early this year and appeared to target Hong Kong investors, he added.

But the force found no links with the massive JPEX cryptocurrency exchange scandal, which affected more than 2,500 people and involved more than HK$1.5 billion in losses.
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Or Wing-yan, chief inspector of the bureau, said the alleged Hounax scammers would reach out to people through social media and WhatsApp, inviting them to join group chats in which “hot tips” were shared.

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