The Securities and Futures Commission (SFC) of Hong Kong issued a warning today, stating that LonShiX and Bitbank (Global) Financial Holding Group are suspected of engaging in fraudulent activities related to virtual assets. The public is advised to be especially cautious.
Previously, the SFC had announced nine “suspicious cryptocurrency exchanges,” and the amount of losses suffered by JPEX has now risen to HKD 1.61 billion.
In addition, Hong Kong’s HashKey Bitcoin trading volume has reached HKD 3.49 billion, “nearing that of Binance,” but it has faced criticism from the community for market manipulation and volume manipulation.
On the 7th of this month, in order to prevent another JPEX fraud case, the SFC not only released a list of the current status of virtual asset platform license applications but also provided a list of suspicious virtual asset trading platforms.
Today, the SFC issued another warning, alleging that LonShiX and Bitbank (Global) Financial Holding Group are involved in fraudulent activities related to virtual assets, and the public is advised to be particularly cautious.
LonShiX and Bitbank’s False Statements and Misleading Promotions
LonShiX falsely claimed on its website that its address is in Hong Kong and falsely identified itself as a bank-approved investment expert on social media and instant messaging platforms to deceive investors into opening accounts.
Bitbank, using a name similar to that of a Japanese cryptocurrency exchange, spread false and misleading information, including claims of having obtained an SFC license and being in the process of becoming a virtual asset service provider. However, the SFC has confirmed that these statements do not align with the facts.
Measures Taken by the SFC
The SFC has included these two companies and their websites in the list of suspicious virtual asset trading platforms, as shown in the figure below.
In response to the SFC’s request, the Hong Kong Police Force has taken action to block the websites of LonShiX and Bitbank (Global) Financial Holding Group, as well as their associated social media accounts.
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Complete list of unlicensed companies and suspicious websites. Source: Securities and Futures Commission of Hong Kong
The SFC warns the public to be cautious of overly enticing investment opportunities, stating in its announcement:
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Tags:
Exchange
Cryptocurrency Exchange
Fraud
Virtual Asset Platform
Scam
Securities and Futures Commission of Hong Kong