Hong Kong's Securities and Futures Commission (SFC) recently cautioned the public regarding the BitForex cryptocurrency exchange, citing suspicions of fraudulent activities. This warning comes in the wake of BitForex going dark in February after an alleged withdrawal of $57 million from its hot wallets.
"Victims are now reporting that the website of BitForex has been shut down, thus preventing them from accessing their own accounts and withdrawing assets held with BitForex," the announcement read.
Hong Kong is not the first nation to experience similar fraudulent activities as Japanese regulators also raised concerns about BitForex operating in their country without the necessary registration, according to Yahoo Finance.
This particularly challenging for Hong Kong Securities because their nation has only been navigating cryptocurrencies, aiming to position itself as a global hub for virtual assets while also addressing regulatory concerns within the industry.
Despite efforts to foster innovation and regulate the market effectively, incidents of scams and unlicensed operations persist, prompting regulatory interventions like the one against BitForex cryptocurrency exchange.
The SFC emphasized that BitForex, purportedly headquartered in Hong Kong, lacks the required license from the commission to operate a Virtual Asset Trading Platform (VATP) in the region. Similar to the case of Japan. It's only in Canada where BitForex holds a license to operate.
Responding to reports from victims who were unable to access their accounts, the SFC urged the Hong Kong Police Force to block access to BitForex's website links and social media pages. This action aims to prevent further harm to investors and users of the platform until regulatory investigations are concluded.
BitForex cryptocurrency and exchange and Hong Kong Securities have yet to comment or respond to inquiries.
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