Hong Kong Police Issues Warning Notice After Binance Traders Loses $446K to Phishing Scam

Jimmy Aki
Last Updated:

Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.

Hong Kong Police have released a cautionary notice after 11 Binance traders fell victim to text message phishing scams. These scams have resulted in losses totaling $446,000 in the last two weeks.

$3.5 Million Hong Kong Dollars Stolen in Two Weeks

In a recent post on its Facebook page dubbed “CyberDefender,” the Hong Kong security authority issued a crucial warning to cryptocurrency traders and investors in the region.

The warning highlighted a concerning surge in phishing scams specifically targeting users of Binance, one of the prominent cryptocurrency exchanges.

According to the alert, fraudsters employed text message schemes, sending unsuspecting users messages containing a deceptive verification link.

The recipients were lured into clicking the link under the false premise of verifying their accounts before a supposed “deadline.”

The scammers also threatened immediate deactivation and loss of assets if users failed to comply.

However, those who fell victim to this ruse granted hackers access to their accounts.

According to the post, 11 phishing cases have been reported in the past two weeks alone. These incidents resulted in a substantial loss of $446,000 (equivalent to $3.5 million Hong Kong Dollars) in virtual assets from affected Binance accounts.

Binance is not licensed by Hong Kong’s financial regulator, the Securities and Futures Commission (SFC).

To aid users in identifying verified virtual asset trading platforms, the post provided a direct link to SFC’s list of approved platforms.

Currently, Hashkey Exchange and OSL Exchange are the only verified and licensed trading platforms in Hong Kong.

CyberDefender Vs JPEX: Over $1.5 Billion Hk Dollars Lost

Despite the commendable efforts of the Securities and Futures Commission (SFC), Hong Kong has unfortunately become a target for cryptocurrency-related scams, with the most notable case being the JPEX exchange.

JPEX debuted in 2021, boldly claiming to be a licensed platform that provides transparent virtual trading services. It lured investors with promises of remarkable investment returns, some reaching as high as 20%.

However, the situation took a dramatic turn on September 20 when the SFC issued a stern statement regarding the platform. The statement pointed out suspicious trading practices and highlighted false and misleading

investment claims associated with the exchange.

Adding to the growing concerns, JPEX hiked up withdrawal fees on its platform, severely limiting users’ ability to access or transfer their assets and funds.

Amid this crisis, the Hong Kong and Macau police received 2,417 complaints from registered investors, reporting losses that exceeded $1.5 billion Hong Kong Dollars.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.