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 exercise caution.
In light of the JPEX fraud case, the SFC had previously released a list of “suspicious cryptocurrency exchanges” on the 7th of this month. Additionally, they provided a warning list of suspicious virtual asset trading platforms.
Today, the SFC issued another warning, stating that LonShiX and Bitbank (Global) Financial Holding Group are suspected of engaging in fraudulent activities related to virtual assets. The public is reminded to be especially cautious.
LonShiX and Bitbank’s False Statements and Misleading Promotions
LonShiX falsely claimed on its website that it is based in Hong Kong and falsely represented itself as a bank-approved investment expert on social media and instant messaging applications in order to deceive investors into opening accounts.
Bitbank, on the other hand, used a name similar to a Japanese cryptocurrency exchange and disseminated false and misleading information. This included claims of having obtained an SFC license and having started the process of becoming a virtual asset service provider. However, the SFC has confirmed that these statements are not true.
Measures Taken by the SFC
The SFC has included both companies and their websites in the warning list of suspicious virtual asset trading platforms, as shown in the image below.
The Hong Kong Police Force has also taken action, as requested by the SFC, to block the websites of LonShiX and Bitbank (Global) Financial Holding Group, as well as their related social media accounts.
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A 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. In their announcement, they stated:
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Tags:
Exchange
Cryptocurrency Exchange
Fraud
Virtual Asset Platform
Scam
Securities and Futures Commission of Hong Kong