Cryptocurrency offers exciting opportunities, but it is also a playground for scammers. In Hong Kong, where cryptocurrency and digital asset trading is booming, knowing how to tell if you’ve been scammed—or if your investment platform is legit—can save you from financial disaster. With crypto-related crimes surging (the Hong Kong Police Force reported 2,100 cases in just the first 10 months of 2024, totaling over HK$3.1 billion in losses), staying informed is your best defense. In this guide, TITUS shares expert insights to help you spot scams, verify platforms, and take action if you’re a victim.
How to Tell If Your Crypto Platform Is Legit
Not sure if your investment platform is the real deal? Here’s how to check:
- Verify Licensing with SFC and HKMA
All legitimate licensed crypto trading platforms in Hong Kong must be licensed under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) framework by the Securities and Futures Commission (SFC) and are monitored by the Hong Kong Monetary Authority (HKMA). The SFC maintains an up-to-date list of licensed virtual asset trading platforms (VATPs) on their website (SFC Licensed VATPs). For example, platforms like OSL Exchange and HashKey Exchange are fully licensed. Always cross-check the platform’s name and URL to avoid imposters. - Check the SFC Warning List
Interestingly, the SFC also publishes a list of websites flagged for suspicious activities (SFC Alert List). If your platform’s name or URL appears here—or doesn’t match the licensed list—it’s a red flag. - Transparent Operations
Legit platforms offer transparent withdrawal processes, responsive customer support, and verifiable contact details. If something feels off, trust your instincts and dig deeper.
5 Warning Signs You’ve Been Scammed
Scammers use clever tricks to trap investors. Watch out for these telltale signs:
- You Can’t Withdraw Funds
Can you see the value and amount of funds on the platform but can’t access it? This is a classic scam tactic designed to lock you in. - Demands for More Money Before Withdrawal
While platforms may implement specific withdrawal fees (which are required to be fully transparent), in the event a platform imposes hidden fees by requesting you to deposit fiat current and/or cryptocurrency for “taxes” or “administrative fees” before releasing your funds, it is likely breaching the relevant Hong Kong regulation. Some scams even let you withdraw a small amount first to build trust—don’t fall for it. - Unusual Conditions or Delays
Typically the process for withdrawing your funds from a platform is generally a straightforward one, but may often requires identity verification and security checks. Legitimate platforms don’t impose bizarre withdrawal hurdles. Excessive and repetitive delays or excuses signal trouble. - Fake Websites or Apps
Scammers often mimic legit platforms with slightly altered URLs (e.g., “HashKeyExchange” vs. “HashKeyExchnage”). Double-check everything against SFC records. - Too-Good-to-Be-True Promises
High returns with no risk? That’s a scam’s calling card. If it sounds unreal, it probably is.
What to Do If You’ve Been Scammed
Suspect you’re a victim? Act fast to maximize your chances of recovery:
- Stop All Transactions
Don’t send more money—scammers often push for additional deposits to “fix” the issue. - Gather Evidence
Save emails, screenshots, transaction records—anything that proves your interaction with the platform. - Contact TITUS for Legal Help
At TITUS, our expert solicitors can guide you through reporting to the Hong Kong Police and SFC, and instigating civil actions where necessary, helping you pursue recovery. Reach out to us immediately at TITUS Contact for tailored advice. - Report to Authorities
File a report with the Hong Kong Police online or at a report room of your local police station, and call the Anti-Scam Helpline (18222) for support. The SFC also welcomes reports of suspicious platforms. We will publish another blog post on how to report to appropriate authorities later.
Why Legal Help Matters
Crypto scams are tricky to unravel due to the anonymity of blockchain transactions. Scammers may even target you again with fake “recovery” offers. Partnering with a firm knowledgeable in Cryptos like TITUS ensures you avoid these traps and get expert guidance every step of the way.