Investigation authorities receive 164 reports so far involving HK$159 million in virtual investment platform HOUNAX fraud case

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6th December 2023 – (Hong Kong) Law enforcement agencies have identified a virtual asset trading platform called “HOUNAX” that allegedly defrauded investors by promising high returns but ultimately failing to return their funds. As of Monday (4th), a total of 164 victims have filed reports, involving approximately HK$159 million.

The Securities and Futures Commission (SFC) flagged HOUNAX as a suspicious virtual asset trading platform on 1st November. The SFC noted that the company claimed to be a cryptocurrency trading platform and had business partnerships with a financial institution and a venture capital company, but these claims were found to be false. The company targeted Hong Kong investors, evident from the pre-filled “+852” field on its user registration page and the presence of “Hounax Hong Kong” social media channels on Facebook, X (formerly known as Twitter), and YouTube.