A wave of phishing scams targeting Binance users in Hong Kong has prompted local police to issue a warning after at least 11 Binance customers lost more than $446,000 (HKD 3.5 million) over the past two weeks. The scammers sent text messages to Binance customers in Hong Kong, claiming that they needed to verify their account by clicking a link before a specified deadline, threatening deactivation if they failed to comply.
Upon clicking the phishing link and entering their credentials, victims unknowingly granted fraudsters full access to their Binance accounts, resulting in the loss of their funds. This phishing tactic follows a typical modus operandi employed in such scams.
The crypto industry in Hong Kong has been in turmoil, exacerbated by the recent fraudulent offering by JPEX, which led to estimated losses of around $180 million. Local police received complaints from more than 2,300 victims of the exchange. This scandal resulted in multiple arrests in Hong Kong and prompted authorities to take stronger actions against illegal crypto offerings.
To address these challenges, Hong Kong’s Securities and Futures Commission mandated the licensing of all crypto exchanges operating within its jurisdiction. This regulatory framework went into effect earlier in the year, but only two exchanges, HashKey and OSL, have obtained licenses to date. Several other crypto exchanges in Hong Kong have applied for licenses, with the JPEX debacle highlighting the need for regulatory oversight and compliance in the crypto industry within the region.
