Hong Kong Flags BitCloud and TCAME for Suspected Crypto Fraud

• Hong Kong’s SFC has cracked down on two crypto trading platforms.
• The regulator made several accusations against the platforms.
• Both platforms have been added to the regulator’s alert list.

Hong Kong’s Securities and Futures Commission (SFC) warned the public on Friday of two crypto trading platforms suspected of virtual asset-related fraud.

The warning comes hardly a week after the regulator added Sure X to its alert list , accusing the platform of targeting Hong Kong users with crypto trading services without authorization under the guise of offering blockchain education.

SFC Cracks Down on New Crypto Platforms

According to an announcement dated April 12, the SFC has posted BitCloud and TCAME to its Suspicious Virtual Asset Trading Platforms Alert List following reports of withdrawal issues by investors.

The SFC said both entities claimed to offer crypto trading services and invited users to sign up on their platforms via social media and instant messaging apps. The platforms then allegedly made it hard for investors to withdraw their funds by asking them to make additional “deposits” to process withdrawals and freezing some accounts.

The SFC further alleged that the two platforms falsified claims about their licensing and certifications in various jurisdictions to woo unsuspecting investors.

“BitCloud refers to a purported virtual asset trading platform operating at https://www.tobitcloud.com/. BitCloud purported to have obtained certificates from the Financial Crimes Enforcement Network and the National Futures Association respectively when in fact this is not the case,” the regulator stated.

TCAME, a crypto trading platform operating at app.tcame.vip, was accused of falsely claiming to have three licenses, including a St Vincent FSA license for trading operation, a Canadian Money Services Business license, and a Philippines BSP license.

Stay updated on Hong Kong’s plan for spot Bitcoin ETF approval:
Hong Kong Eyes Spot Bitcoin ETF Approval in April

Read about other crypto exchanges added to Hong Kong’s alert list:
Crypto Exchanges EDY and HKCEXP Added to HK’s Watchlist