Authorities Warn as Fraudsters Promote Fake National Coin

• A social media account used the Chief Executive’s name to promote a scam crypto.  
• The scam coin announcement gained over 123,000 views before officials intervened.  
• Hong Kong now enforces stricter rules to stop illegal crypto activities online. 

A cryptocurrency scam using a fraudulent social media account impersonating Hong Kong’s Chief Executive has sparked concerns. Authorities exposed the scam after fraudsters promoted a fake cryptocurrency under the name ‘National Hong Kong Coin’, which misled many online. The incident underscores growing risks in the digital asset market, highlighting the necessity for stricter regulatory oversight.  

Fraudulent Chief Executive Account Promotes Coin

A fake social media account named “JohnLeeKa_Chiu” falsely claimed to represent Hong Kong’s Chief Executive. The account announced the launch of the “National Hong Kong Coin” on the Solana blockchain, stating that it marked a new era of digital innovation and economic expansion. Within hours, the post gained traction, accumulating over 123,000 views and 130 reposts.  

The scammers included a picture of the Chief Executive for credibility along with references to prominent personalities like OpenAI, US President Donald Trump, and First Lady Melania Trump. The cybercriminals also posted across multiple discussions, garnering attention.

Ng Kit Chuang, who represents Hong Kong Legistar, said the government had not launched any official cryptocurrency. However, he called on the public to check legitimate places for financial information before engaging in any financial dealings. The HKSAR government reacted by issuing a quick statement to dispel the rumor of cryptocurrencies and warned the citizens to be cautious of online cheating.

Wider Trend of Cryptocurrency Impersonation Scams

The Hong Kong scam is part of a pattern in which fraudsters use government officials and celebrities to promote fraudulent assets. Recently, scammers used impersonation to promote a meme coin claiming it was backed by Saudi Arabia’s Crown Prince Mohammed bin Salman, which was later confirmed to have been a compromise of their account by the Saudi Law Conference.  

Meanwhile, Argentina witnessed a drastic rug pull scheme. The Libre token, which was introduced by Present Javier Milei rose to a peak of $4.50 and drastically crashed. Investors had to face heavy losses, estimated to be $87 million. These cases indeed reflect a highly concerning uptick in the fraud circuit in which scammers use prominent personalities to gain people’s trust.  

Related: Fake Eliza Token Scam Surfaces After ai16z Founder’s X Hack

Strengthening Regulations to Safeguard the Market

When responding to the current impending malicious accusations, Hong Kong’s Securities and Futures Commission has intensified efforts to curb digital assets. The SFC now mandates all centralized virtual asset trading platforms operating in Hong Kong or targeting its investors to obtain a Virtual Asset Service Provider (VASP) license.

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