Hong Kong SFC investigating BitForex for crypto fraud

In addition to removing the exchange’s social media accounts, Hong Kong will also ban connections to its websites.

Cryptocurrency exchange BitForex was the subject of a public alert from the Securities and Futures Commission (SFC) on March 4, 2024, after allegations of fraud. Although BitForex states that it is located in Hong Kong, it has not sought a license to operate from the SFC.

“The public is being alerted by the Securities and Futures Commission (SFC) about a possible virtual asset scam utilizing a supposed VATP called BitForex,” the SFC said in a statement. “Despite BitForex’s claims of having a Hong Kong headquarters, the SFC has taken notice that the company has not filed for or received a license to run a VATP in the city.”

The SFC has reported that BitForex customers have been experiencing major problems with asset withdrawals as of late, which they attribute to maintenance on the wallet and the website. Because of these growing problems, the platform’s website has gone down, and users have no way to access their money or accounts.

As of today, BitForex is one of the many virtual asset trading platforms that the SFC flags as potentially fraudulent. The Hong Kong Police Force is attempting to demolish related social media accounts and ban access to the platform’s website in response to a recommendation from the SFC.

The SFC has issued a warning about the dangers of trading on unlicensed platforms for virtual assets, stating that investors run the risk of losing all of their funds.

In addition, the SFC has issued several warnings today on fake websites pretending to be real platforms for trading virtual assets.

In the wake of an alleged $57 million drain on February 23, BitForex suddenly terminated operations and shut down its website. The lack of communication in the deal has raised worries about the possibility of a rug pull.

Also Read: The United Kingdom Seeks Additional Authority to Regulate Cryptocurrency March 4, 2024