Hong Kong’s Securities and Futures Commission (SFC) has issued a warning regarding suspected fraud involving cryptocurrency companies Hong Kong Digital Research Institute and BitCuped. In a notice dated December 6, the SFC said Hong Kong police had blocked access to the websites of BitCuped and the Hong Kong Digital Research Institute, also known as HongKongDAO, claiming they could trick users into making illegal investments. The regulator also sent cease-and-desist letters to operators of company websites.
“The SFC suspects that HongKongDAO may be disseminating false and misleading information about itself and its business through online channels,” the notice, dated December 6, said. “The SFC notes that BitCuped claims on its website that “Laura Cha” and “Nicholas Aguzin” are its chairman and chief executive officer, respectively, when in fact neither of them has any connection to BitCuped.” According to the SFC, “misleading” information related to HongKongDAO could lead people to believe that its services are “properly licensed and legal” and invest in the HKD token. The securities regulator added that Cha and Aguzin were executives of the Hong Kong Stock Exchange and are not associated with BitCuped.
In October, the SFC announced it planned to update its digital currency sales policy and requirements, citing market developments and industry feedback. From June 2024, exchanges operating in Hong Kong will be required to hold a virtual asset service provider license from the SFC.
