Hong Kong's securities and futures regulator has warned the public about cryptocurrency exchange BitForex over suspected fraud, it announced on Monday.
On February 23, BitForex went offline after $57 million was reportedly withdrawn from the exchange's hot wallets. Last year, Japanese regulators reported BitForex for operating in the country without proper registration.
Hong Kong has softened its chances on cryptocurrencies and is trying to become the world's hub for virtual assets, while also trying to police an industry that has seen a slew of scams. Last year, the company opened up crypto trading to retail traders and announced it was considering applications for spot crypto exchange-traded funds (ETFs). At the same time, there were also arrests, for example as part of an investigation in connection with the crypto exchange JPEX.
“BitForex, which purports to be headquartered in Hong Kong, has not been licensed by the SFC nor has it applied to the SFC for a license to operate a VATP in Hong Kong,” Hong Kong’s Securities and Futures Commission (SFC) said. BitForex is also licensed to operate in Canada.
After victims reported that BitForex's website had been shut down, the SFC asked Hong Kong police to block access to relevant website links and social media pages, preventing them from accessing their own accounts and withdraw assets held with BitForex.
BitForex and Hong Kong police did not immediately respond to requests for comment.
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