A collaborative report by Bitget, SlowMist, and Elliptic highlights a 24% increase in crypto scams in 2024, totaling $4.6 billion in losses. Deepfake AI impersonations, social engineering schemes, and modern Ponzi scams are the top threats, with nearly 40% of high-value frauds involving AI-generated videos of public figures like Elon Musk. Scammers are also exploiting KYC procedures, forging customer service interactions, and using fake platform dashboards. Social engineering tactics include AI-powered arbitrage bot scams and phishing links, while modern Ponzi schemes disguise themselves as legitimate DeFi, NFT, or GameFi projects. The report cites the JPEX scandal in Hong Kong, where $213 million was lost, and exposes rug pulls like Leaper Finance. To combat this, Bitget and partners launched an Anti-Scam Hub and a $300 million protection fund to trace illicit funds and disrupt phishing networks.
read moreJPEX
0 in Finance and 0 in Crypto last week
Clay: AI-Powered Data Integration for Business Growth
Clay is a versatile data integration and workflow automation platform designed to enhance business operations such as recruitment, sales, and marketing. It aggregates data from over 75 sources, including LinkedIn and Google Careers, to provide detailed profiles of individuals and companies. The platform leverages AI (via Claygent) to automate tasks like personalized email drafting and web scraping, reducing manual effort. Clay also excels in lead generation, offering tools to prioritize prospects and create Ideal Customer Profiles (ICPs). Its seamless integration with CRMs like Salesforce and HubSpot, along with customizable automation templates, ensures adaptability to diverse business needs. Notable users include Google, HubSpot, and LinkedIn, highlighting its reliability and effectiveness.
read moreHong Kong Sets Up Crypto Task Force Post-JPEX Probe
Hong Kong authorities are establishing a specialized cryptocurrency task force following the JPEX exchange investigation, underscoring the government’s commitment to tighter oversight of the digital asset sector. The task force will likely focus on enhancing regulatory frameworks and investor protections as the city aims to balance innovation with risk management in its burgeoning crypto market. This development comes amid global calls for clearer crypto regulations and could position Hong Kong as a leader in Asia’s blockchain governance.
read moreHong Kong Enacts Stablecoin Licensing Law to Boost Crypto Hub Status
Hong Kong’s Legislative Council has approved a licensing regime for fiat-referenced stablecoin (FRS) issuers, mandating compliance with reserve management, redemption guarantees, and anti-money laundering (AML) standards. The law, part of Hong Kong’s push to become a digital asset hub, follows the collapse of crypto exchange JPEX in 2023 and seeks to restore trust in the sector. Issuers must meet strict requirements, including segregation of client funds and disclosure rules, with unauthorized ads banned even during a six-month grace period. The HKMA will further consult on detailed implementation. Meanwhile, the U.S. Senate is progressing with its own stablecoin bill, the GENIUS Act, signaling a global shift toward clearer crypto regulations. Hong Kong’s ordinance is set to take effect later this year, with transitional provisions for compliance.
read moreHKSFPA Proposes Independent SROs to Oversee Hong Kong Crypto Industry
The Hong Kong Securities and Futures Professionals Association (HKSFPA) is advocating for independent self-regulatory organizations (SROs) to oversee the crypto industry, aiming to balance supervision and innovation. They propose a system where the Securities & Futures Commission (SFC) retains control over market conduct but delegates licensing authority to industry-specific bodies, creating a structured yet adaptable regulatory environment. This proposal comes amidst mixed signals from Hong Kong regulators towards the crypto industry, with recent approvals and warnings reflecting the evolving landscape of digital assets.
read moreHong Kong’s Crackdown on Virtual Asset-Related Crimes and Trading Platforms
The incidences of virtual asset-related crimes in Hong Kong have surged over the past three years, with reported cases nearly tripling and involving significant amounts of money. The Securities and Futures Commission has intensified efforts to disclose information about suspicious virtual asset trading platforms, with over 100 platforms under scrutiny. The government is also considering a legislative proposal to license virtual asset trading service providers and regulate stablecoin issuers, while major cryptocurrency exchanges are seeking licensing approval from the SFC.
read moreHong Kong Government Plans Licensing Bills for Crypto Regulation
The Hong Kong government plans to introduce licensing bills for stablecoin and over-the-counter (OTC) crypto trading to regulate the industry and protect investors. The bills are based on the outcomes of public consultations and aim to address the increasing number of crypto-related criminal cases. Additionally, there is a proposal to allow the issuance of Chinese yuan-linked stablecoins, and experts anticipate the approval of spot crypto exchange-traded funds (ETFs) by the middle of this year.
read moreHong Kong Government Plans Legislation for Stablecoins and Virtual Asset OTC Services
The Hong Kong government is moving forward with legislation to regulate stablecoins and virtual asset OTC services, aiming to introduce licensing regimes for providers. Despite efforts to establish Hong Kong as a crypto hub, the Securities and Futures Commission has reported a significant increase in crypto-related crime cases, leading to the closure of a crypto exchange and the arrest of numerous individuals. Hong Kong is striving to balance fostering innovation in the crypto sphere with regulatory compliance and anti-money laundering measures.
read moreHong Kong Regulator Blocks Crypto Websites Over Illegal Token Offerings and False Claims
Hong Kong’s Securities and Futures Commission (SFC) has blocked access to the websites of HongKongDAO and BitCuped due to their involvement in illegal token offerings and spreading false information. The SFC has issued cease and desist letters to the operators of these websites, demanding that they halt the offerings of the HKD token. This crackdown is part of Hong Kong’s efforts to combat crypto fraud, as the SFC has also initiated actions against other crypto firms in recent months.
read moreTaiwanese Prosecutors Identify New Suspects in JPEX Scandal
Taiwanese prosecutors have identified two new suspects, Chang Tung-Ying and Shih Yu-sheng, in the JPEX scandal, who are now under investigation for alleged fraud. The charges against them relate to violations of the Banking Act and the Money Laundering Control Act. JPEX, a cryptocurrency exchange, is facing legal turmoil in Hong Kong, with over 2,000 complaints from users claiming losses of nearly $180 million. Despite Taiwan’s anti-money laundering regulations, JPEX remains unregistered with the Financial Supervisory Commission for AML compliance.
read more