There’s a new scam going around, and it’s got all the makings of a Hollywood thriller.

Someone impersonated Hong Kong’s Chief Executive, John Lee Ka-chiu, on X, promoting a fake national cryptocurrency called the “National Hong Kong Coin” (HKONG). So creative name, huh.

The scam

The impersonator’s X account, “JohnLeeKa_Chiu,” announced this strategic step as a new era in digital innovation for Hong Kong.

But here’s the thing, it was all a ruse. The account interacted with big names like Donald Trump and Narendra Modi, even thanking Barstool Sports founder Dave Portnoy for his help in launching the fake token. It was a slick move, but not slick enough.

The government steps in

Hours later, the real John Lee Ka-chiu’s team stepped in, denying any connection to the X account, and they warned the public not to fall for the fake news.

Johnny Ng, a member of Hong Kong’s Legislative Council, echoed this warning, emphasizing that the government was not launching a cryptocurrency. It was a clear case of identity theft aimed at scamming unsuspecting investors.

The scam didn’t quite take off, partly because the hackers didn’t release the token’s contract address quickly enough.

Investors saw the red flags, and the HKONG token barely reached a market cap of $200,000 before it tanked.

This incident raises serious questions about the X account’s verification and security, especially given the history of hacked accounts promoting crypto scams.

The bigger picture

This isn’t just about Hong Kong, because it’s part of a larger issue with political memecoins. Remember the Central African Republic’s experiment or the Argentina-linked Libra token crash? These have done enough damage to the crypto industry.

In the U.S., there’s even a proposed law to stop federal officials from promoting financial assets.

It’s time to take a closer look at these politician-issued tokens and the risks they pose. The party might be over for political memecoins, but the cleanup is just beginning.

Have you read it yet? Bitcoin’s big comeback on the horizon, new ATH by June?

Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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