Several users of Binance in Hong Kong have been scammed out of approximately $450,000 due to a string of fraudulent text messages, according to a warning issued by the Hong Kong police.
A total of 11 Hong Kong-based Binance customers fell prey to a spate of phishing scams disseminated via text messages. The fraudsters were able to gain full access to the victims’ Binance accounts after the users clicked on a link within the scam message and “verified” their personal details.
The fraudulent scheme has resulted in combined losses of more than $446,000 in the past two weeks. The Hong Kong police have urged any users who suspect they’ve received a potentially fraudulent message to report it on the “fraud prevention” section of its official website.
In response to the increasing scams, the Hong Kong Securities and Futures Commission (SFC) has published a list of verified virtual asset trading platforms. Currently, only two cryptocurrency exchanges, HashKey and OSL, are fully licensed for retail investment in Hong Kong.
This incident comes in the wake of the recent JPEX crypto exchange scandal, which saw an estimated $180 million in losses and over 2,300 Hong Kong-based investors filing complaints with local police. JPEX, an unlicensed cryptocurrency exchange, has been accused of attracting local residents with flashy advertising and high returns on its lending products before abruptly increasing withdrawal fees, rendering funds inaccessible to its users.
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