Potential cryptocurrency scam puts BitForex under scrutiny by Hong Kong’s SFC

Crypto News– On March 4, 2024, Hong Kong’s Securities and Futures Commission (SFC) issued a public warning regarding BitForex, a virtual asset trading platform suspected of engaging in fraudulent activities. Despite claiming to be headquartered in Hong Kong, BitForex has neither obtained a license from the SFC nor applied for one to operate its business.

Potential cryptocurrency scam puts BitForex under scrutiny by Hong Kong’s SFC

In its statement, the SFC cautioned the public about potential virtual asset fraud associated with BitForex. The commission highlighted that BitForex, operating under the guise of a virtual asset trading platform, has not undergone regulatory oversight by the SFC.

Recently, users of BitForex have encountered significant difficulties withdrawing their assets, purportedly due to issues related to wallet and website maintenance. These challenges have escalated to the extent that the platform’s website has been shut down, preventing users from accessing their accounts or retrieving their funds.

The SFC has added BitForex to its Suspicious Virtual Asset Trading Platforms Alert List. Following the SFC’s recommendation, the Hong Kong Police Force is actively working to block the platform’s website links and dismantle associated social media pages.

In its warning, the SFC emphasizes the inherent risks associated with trading on unregulated virtual asset platforms, cautioning investors that they could potentially lose all their funds.

Additionally, the SFC issued further alerts today regarding fraudulent websites impersonating legitimate virtual asset trading platforms. Notably, HSKEX falsely claims to represent Hash Blockchain Limited, while the websites www.oslexu.com and www.oslint.com are posing as OSL Digital Securities Limited.

Amid an alleged $57 million outflow on February 23, BitForex abruptly shut down its website and ceased operations. Given the exchange’s lack of communication, concerns have arisen regarding the possibility of a rug pull.