Thomas Daniels
The Hong Kong Monetary Authority (HKMA) has issued a public warning against an unregulated cryptocurrency exchange, “Kucoin,” which is allegedly involved in fraudulent activities. According to the HKMA, this platform falsely claims to be regulated by the authority and has been demanding payments to release funds from frozen accounts.
In an official notice released on the Hong Kong Special Administrative Region’s government website, the HKMA highlighted that Kucoin has been circulating documents purportedly from the authority, misleadingly stating that it is licensed by the HKMA. These documents have reportedly been used to solicit fees from individuals to purportedly recover funds from inaccessible accounts.
The HKMA has emphasized that it has no association with Kucoin and does not engage in personal financial matters with the public. The warning underscores the importance of verifying the legitimacy of financial entities claiming regulatory oversight.
The connection between this warning and KuCoin, the well-known cryptocurrency exchange, remains uncertain. Notably, KuCoin recently withdrew its application for a Virtual Asset Trading Platform (VATP) license in Hong Kong. As of now, KuCoin has not released any official statement regarding the HKMA’s announcement.
This development follows legal action against KuCoin in March by the U.S. Department of Justice. The charges against KuCoin and its founders, Chun Gan and Ke Tang, include violations of the Bank Secrecy Act and accusations of facilitating illegal money transfers linked to laundering activities. Both founders, Chinese nationals, are currently at large, facing potential prison sentences of up to 10 years. In response to these legal challenges, KuCoin experienced significant customer withdrawals totaling over $350 million, although company officials have reassured the public about the security of their assets.
