Hong Kong’s SFC Issues Warning on BitForex Amid Crypto Scam Allegations
On March 4, Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), issued a public notice about the cryptocurrency exchange BitForex over alleged fraudulent dealings.
BitForex, although based in Hong Kong, does not possess the license required by the country’s regulatory framework for digital asset operators. This advisory is part of the SFC’s commitment to providing sanity and regulatory compliance in the crypto sector.
The SFC’s notice warned the public of suspected virtual asset fraud involving BitForex.
BitForex has not been licensed by the SFC or applied for a license to operate a virtual asset trading platform (VATP) in Hong Kong. The regulator has advised investors to exercise caution when dealing with unregistered Bitcoin platforms.
Subsequently, the SFC has asked law enforcement officials to block access to the exchange’s web links and social media pages.
This development follows reports from investors who couldn’t access their funds on BitForex during scheduled maintenance.
Initial reports implied that BitForex’s hot wallets experienced outflows of over $50 million, leading to the suspension of withdrawals and leaving investors unable to access their cryptocurrency funds.
BitForex has always been in the news for the wrong reasons.
Seeing some suspicious activity with the crypto exchange @bitforexcom.
On Feb 23 their hot wallets saw outflows of ~$56.5M. Shortly after this time withdrawals stopped processing with no official announcements having been made since.
Currently users are asking questions on… pic.twitter.com/gFEcwExHKh
— ZachXBT (@zachxbt) February 26, 2024
Last year, Japanese regulators flagged the exchange for operating an unlicensed exchange in the country. Before that, crypto
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