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Hong Kong police investigates Hounax exchange for alleged rug pull 

Hong Kong Police and SFC investigate Hounax, a non-licensed crypto exchange, after receiving 145 reports of fraud.

Following the arrest of several individuals linked to the JPEX cryptocurrency fraud, another Hong Kong-based virtual asset trading platform, Hounax, has experienced a rug pull. According to local reports, the Hong Kong Police have received reports from 145 victims, involving a total loss of approximately HK$148 million.

The Securities and Futures Commission (SFC) of Hong Kong revealed that they had received 18 complaints related to Hounax, with the amount involved ranging from HK$12,000 to as high as HK$10 million. Julia Leung, the CEO of the SFC, clarified that Hounax is not a licensed virtual asset trading platform and has not applied for a license from the SFC. Consequently, the SFC lacks the authority to halt its operations but has included the platform in its list of unlicensed companies and suspicious websites.

Earlier in November, Taiwan authorities arrested several figures linked to the JPEX scandal. The scandal saw a loss of nearly $213 million. The investigation on JPEX is still far from over, as key celebrities in Taiwan are also being investigated for their role in promoting the exchange as brand ambassadors. After JPEX, Hong Kong regulators have been pressing down on crypto regulations, which is likely to intensify further after the latest allegations against Hounax. 

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