Key Takeaways
- Money on a crypto platform is not a bank deposit and is not covered by the Deposit Protection Scheme, even if the app looks like a bank.
- Before you pay, check the SFC's list of licensed platforms; 'applicant' or 'deemed licensed' does not mean formally licensed.
- Search the platform, wallet address or phone number on Scameter, and call the Anti-Scam Helpline 18222 if unsure.
- Guaranteed returns, a WhatsApp 'mentor' and 'pay a fee to withdraw' are the three signs to stop immediately.
Is it safe? Only if the platform is formally licensed by the SFC, and even then crypto prices can fall to zero. Is it a deposit? No, it is not protected like bank savings. What if it goes wrong? Stop paying, call 18222 and report it, then follow the steps below.
What is a crypto scam?
A crypto scam is a fraud that uses cryptocurrency, a crypto app or a fake trading platform to take your money. It usually promises high or guaranteed returns, shows fake profits on screen, and then blocks withdrawals or asks for extra 'fees' before the money disappears for good.
Think of it like a shop with a beautiful window display but no business licence on the wall. Checking the licence is the first step. The difference: a real licence only tells you the shop is supervised; it does not promise you will make money. The SFC says plainly that its licensed list does not guarantee any platform's performance.
How do crypto scams usually work in Hong Kong?
Most follow the same five steps: a friendly first contact, a trusted 'mentor', a small early profit you can withdraw, a much larger deposit, and then a frozen account. The early win is bait. Once the deposit is large enough, withdrawals stop and new 'tax' or 'unlock' fees appear.
- 1. Contact: a social media ad, dating app match or wrong-number WhatsApp message.
- 2. Trust: a 'mentor' or 'insider group' shares screenshots of big wins.
- 3. Bait: you invest a little and are allowed to withdraw a small profit.
- 4. Pressure: a 'limited-time' offer pushes you to add much more.
- 5. Lock: withdrawals fail, and you are told to pay a fee first.
Regulators do not contact members of the public on WhatsApp to recommend investments. Treat any unsolicited 'investment mentor' as a red flag.
How do you check a crypto platform step by step?
Check the platform's exact name on the SFC's licensed list, confirm it is not only an applicant, search the SFC's suspicious platforms list, then run the website, wallet address or phone number through Scameter. If any step fails or feels unclear, call the Anti-Scam Helpline 18222 before paying.
- Step 1: Open the SFC's lists of virtual asset trading platforms and find the exact name and website.
- Step 2: If it appears only as an applicant or 'deemed licensed', remember the SFC says these are NOT formally licensed.
- Step 3: Search the SFC's suspicious virtual asset trading platforms list.
- Step 4: Search the website, wallet address, phone or account number on the police's Scameter.
- Step 5: Still unsure? Call the Anti-Scam Helpline 18222 before you pay.
Watch for look-alike names and websites. Scammers often copy a licensed brand with one letter changed.
What can Hong Kong learn from the JPEX case?
JPEX was placed on the SFC's Alert List in July 2022, more than a year before users found they could not withdraw in September 2023. The warning was public; many users did not check. The lesson is simple: an official warning only protects you if you look it up yourself.
According to the SFC's statement on JPEX, the platform was listed after failing to respond to the regulator, and promotion through social media influencers and over-the-counter money shops gave it a false look of legitimacy. Police later charged a number of people over the case, which involved reported losses of about HK$1.6 billion.
Three warning signs from JPEX still appear in scams today: unusually high 'earn' yields, claims of overseas licences instead of an SFC licence, and famous faces doing the selling.
Is a licensed crypto platform the same as a bank?
No. A bank deposit is supervised by the HKMA and covered by the Deposit Protection Scheme up to a set limit. Assets on an SFC-licensed crypto platform are supervised but are not deposits, and their value can still fall. A platform on the suspicious list offers no protection at all.
| Where your money sits | Who supervises | Deposit Protection Scheme? | Main risk |
|---|---|---|---|
| Bank savings account | HKMA | Yes, up to the legal limit | Low |
| SFC-licensed crypto platform | SFC | No | Crypto prices can fall sharply |
| Applicant or 'deemed licensed' platform | Not formally licensed | No | Higher; check its status often |
| Platform on the suspicious list (e.g. JPEX) | Nobody | No | Total loss |
Details of what the scheme covers are on the Deposit Protection Scheme website.
What should you do if you have already been scammed?
Stop sending money at once, including any 'fee' to unlock withdrawals. Save chat records, transfer receipts and wallet addresses, then call 18222 or report to the police. Report the platform to the SFC as well. Act quickly, because funds moved through crypto are hard to trace once they leave.
- Do not pay any 'tax', 'margin' or 'unlock' fee. It is part of the scam.
- Tell your bank immediately if you paid by bank transfer or card.
- Report to the police and the SFC with screenshots and wallet addresses.
- Beware 'recovery agents' who contact you offering to get your money back for a fee. This is a second scam.
Five minutes of checking beats any promise of returns
You do not need to understand blockchain to stay safe. You only need the habit of checking before you pay, and the confidence to say no to anyone who rushes you.
Shareable summary (screenshot and send)
- Crypto on a platform is not a bank deposit.
- Check the SFC licensed list and the suspicious list first.
- Search Scameter or call 18222 before you pay.
- Never pay a fee to withdraw your own money.
This article is general education, not investment, legal or tax advice. Digital assets are high-risk and can lose all their value.
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If you or your company already hold digital assets, a hardware wallet keeps your private keys off the internet, and every transaction must be confirmed on the device itself. UD is an authorised Trezor reseller in Hong Kong and can answer questions in Cantonese, Mandarin or English.
Frequently Asked Questions
Is my money safe on an SFC-licensed crypto exchange?
It is safer than on an unlicensed platform, because the SFC supervises how client assets are kept. It is still not a bank deposit, and crypto prices can fall to zero.
What does 'deemed to be licensed' mean?
It is a platform that had applied before the licensing deadline and may keep operating while its application is processed. The SFC states clearly that such platforms are not formally licensed.
What is Scameter?
Scameter is a free search tool from the Hong Kong Police's CyberDefender that checks websites, phone numbers, bank accounts and crypto wallet addresses against reported fraud cases.