Crypto trading platform Hounax is being investigated for allegedly defrauding 131 people of HKD 120 million ($15.4 million).
The investigation was launched by Hong Kong police after receiving complaints about the company.
According to local media, the victims were promised investment opportunities in digital assets through the platform, but were unable to withdraw their funds.
Hounax was also previously flagged by Hong Kong’s Securities and Futures Commission as a suspicious entity involved in cryptocurrencies.
The regulator stated that the company falsely claimed to have partnerships with a financial institution and a venture capital firm.
