SFC alerts public about BitForex suspected fraud involving unlicensed virtual asset trading platform. Users facing withdrawal issues. Risks highlighted for trading on unregulated platforms.
Today, the Securities and Futures Commission (SFC) released a public caution regarding BitForex, an online platform for trading virtual assets suspected of engaging in fraudulent activities. Despite its claims of being headquartered in Hong Kong, BitForex has not sought licensure from the SFC for its activities.
"The Securities and Futures Commission (SFC) has alerted the public today about potential virtual asset fraud linked to a virtual asset trading platform (VATP) operating under the name BitForex (Note 1). Allegedly based in Hong Kong, BitForex has not obtained a license from the SFC nor has it initiated the process for obtaining one to operate a VATP in Hong Kong," noted the SFC.
Reportedly, users have encountered significant difficulties in withdrawing their assets from BitForex, purportedly attributed to maintenance of wallets and the website. These issues have escalated to the point where the platform's website has been taken offline, leaving users unable to access their accounts or funds.
BitForex has been added to the Suspicious Virtual Asset Trading Platforms Alert List by the SFC. Following the SFC's recommendation, the Hong Kong Police Force is actively working to block access to the platform's website and dismantle any associated social media pages.
The SFC's advisory also underscores the risks associated with trading on unregulated virtual asset platforms, warning investors of the potential loss of all their invested funds.
In addition, the SFC has issued alerts today regarding fraudulent websites that impersonate legitimate virtual asset trading platforms. Notably, HSKEX falsely represents Hash Blockchain Limited, while the websites www.oslexu.com and www.oslint.com are posing as OSL Digital Securities Limited.
BitForex abruptly ceased operations and shut down its website following an alleged outflow of $57 million on February 23. The lack of communication from the exchange has raised concerns about the possibility of a rug pull.