Investor Convicted For Unlicensed Investment Advice In Paid Telegram Group

A Hong Kong court has convicted a man for providing paid investment advice in a Telegram group without proper licensing.

What Happened: Mingtung Wong, a licensed representative with the Hong Kong Securities and Futures Commission (SFC), was found guilty of acting beyond his professional affiliations’ scope.

The Eastern Magistrates’ Court ruling, initiated by the SFC, revealed that Wong managed a subscription-based Telegram group named “FRANKY – Real-time Live Hub” from January 2018 to May 2019.

Although Wong held a license to conduct regulated activities, his authorization was restricted to his affiliated companies.

Operating the Telegram group independently breached SFC regulations, leading to his conviction.

Wong admitted to the charges and received a HKD 10,000 fine.

He was also ordered to cover the investigation costs incurred by the SFC.

The court emphasized that Wong’s activities, conducted in a personal capacity, violated the Securities and Futures Ordinance, which mandates proper licensing for providing securities advice.

The SFC has urged investors to verify the licensing status of individuals and firms offering investment advice through their public register at www.sfc.hk, underscoring the importance of regulatory compliance in financial advisory services.

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Why It Matters: Ethereum ETH/USD co-founder Vitalik Buterin recently criticized the trend of celebrity-backed meme coins.

Through a series of tweets and a detailed blog post, Buterin condemned these coins for their lack of meaningful impact and longevity.

He called for a shift towards projects that serve public-good goals and create lasting value.

Buterin’s dissatisfaction stemmed from observing coins like MOTHER/USD, launched on Solana SOL/USD by rapper Iggy Azalea, which he viewed as contributing little beyond price speculation.

He contrasted these with projects like “Stoner Cats,” which funded an animated show, urging the community to explore more positive-sum versions of financialized games and charity coins.

Buterin proposed that the crypto community focus on creating projects that offer economic benefits to lower-income players and have enduring value.

He cited examples like Axie Infinity AXS/USD, which financially benefited low-income users through its play-to-earn feature.

He stressed that projects should be designed to last at least 10 years to ensure their lasting impact.

These insights came as Buterin discussed recent scams involving compromised celebrity accounts, such as those of Gigantic-Cassocked-Rebirth, Rich the Kid and Caitlyn Jenner, which were used to promote fraudulent meme coins.

Buterin’s critique and the recent court ruling highlight the ongoing challenges and debates within the cryptocurrency industry.

What’s Next: These topics will be further explored at Benzinga’s Future of Digital Assets event on Nov. 19, offering a platform for industry leaders to discuss the evolving landscape of digital finance and the role of meaningful projects in the cryptocurrency space.

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