Key takeaways:
- Major local cryptocurrency exchanges have been impersonated by phony websites, which the SFC has detected and prohibited.
- The relevant websites have been blocked by the Hong Kong Police Force upon request from the SFC.
Major local cryptocurrency exchanges have been impersonated by phony websites, which the Securities and Futures Commission (SFC), Hong Kong’s financial authority, has detected and prohibited.
On March 4, the SFC formally warned users not to trust any of the numerous dubious websites posing as two authorized cryptocurrency trading platforms. The cybercriminals established multiple fictitious websites that mimicked the identities of two authorized Hong Kong exchanges: Hash Blockchain Limited, popularly known as HashKey and OSL Digital Securities.
The statement stated that the SFC had blacklisted six websites in all, including oslexu.com, oslint.com, hskexpro.com, hskex.com, hskexs.com, and hskexit.com. The actions were taken in response to concerns about making money withdrawals and expensive withdrawal fees and commissions.
The relevant websites have been blocked by the Hong Kong Police Force upon request from the SFC.
These websites, along with other spoofs that mimic other cryptocurrency exchanges like MEXC, are included on the official crypto alert list maintained by the SFC. Prior to that, on February 9, the SFC blocked eight domains that mimicked MEXC.
For pertinent information on licensed businesses, including their official websites, investors are advised by the SFC to confirm trading platforms through its public register of licensed individuals and registered institutions, as well as the list of licensed virtual asset trading platforms. According to the regulator:
“Investors should also refrain from sending money or making any transactions before verifying the counterparty’s identity,”
The layer-1 security expert Bartosz Barwikowski of the blockchain security firm Hacken claims that it might not be so simple to determine whether this or that website is authentic or fraudulent. He mentioned that the first time a visitor visits a website, it could be especially challenging.
Instead of relying on search engines or social networking platforms, such as Reddit, he advised people to rely on reliable third parties, as scammers may easily manipulate search engine results.
The announcement was made a few days after the SFC, on February 29, accepted the final applications from cryptocurrency exchanges for the most recent licensing cycle. The cryptocurrency exchanges that did not register in time to submit their applications were required to leave the area within three months.
