Recently, the Hong Kong police discovered a company named "HOUNAX" suspected of fraud. It lured investors with high returns through a virtual asset trading platform, ultimately leaving investors unable to retrieve both their principal and profits.
As of the 24th, there have been 131 victims reporting cases, ranging in age from 19 to 78 years old, with an involved amount reaching as high as 120 million Hong Kong dollars.
HOUNAX started operating earlier this year. Its website is in Traditional Chinese, and it uses the telephone area code "+852." On the 25th, the police held a press conference.Mr. CHAN Wai Kei , Rick from the Commercial Crime Bureau indicated that HOUNAX has been flagged as red and high-risk in the police's anti-fraud programme, "Fraud Surveillance System." Additionally, the Securities and Futures Commission included HOUNAX in the list of "Suspicious virtual asset trading platforms" on November 1st.
(Source: Securities and Futures Commission)
Chief Inspector Ko Wing Yan from the Commercial Crime Bureau Intelligence Division mentioned that initially, the HOUNAX scammer would pose as an investment expert. They would contact victims through various social media platforms, sharing supposed investment tips and experiences. When the victims showed interest in investing, the scammer would send them hyperlinks to download the HOUNAX application, prompting them to invest in virtual currencies through HOUNAX.
To gain the trust of victims, fraudsters create false transaction records and returns in victims' online investment accounts. Victims may see apparent growth in their assets within the HOUNAX programme, but these are merely fictitious numbers.
In reality, their initial capital has been transferred to other accounts when they made transfers to third-party accounts. When victims attempt to retrieve their assets, the purported investment platform managers refuse under various pretexts or demand 20% to 80% as fees.
Ultimately, victims are unable to recover their funds, and the so-called investment platform managers disappear without a trace, even removing victims from groups, leaving them to realise they've been deceived.
Ke Wing Yan pointed out that scammers are adept at creating false announcements. For instance, HOUNAX claimed to comply with regulations from an international anti-money laundering organisation, stating that victims, in order to redeem their funds, must pay 80% of the investment amount in their asset account as a verification fee before processing withdrawals.
For instance, if there were 100,000 USDT in the asset account, victims would need to pay 80,000 USDT, equivalent to Hong Kong dollars, as the verification fee. However, even if victims paid the so-called verification fee, they still couldn't retrieve their funds in the end.
In a move to combat telephone fraud, a law enforcement agency recently executed an operation that led to the apprehension of two individuals, aged 20 and 33. The arrests took place in a public facility, and the suspects are currently under investigation for their involvement in a series of fraudulent activities.
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