SFC of Hong Kong Alerts Public About Cryptocurrency Platform BitForex

The Securities and Futures Commission (SFC) of Hong Kong has issued a warning to investors about the cryptocurrency trading platform BitForex, flagging potential fraudulent activities. This was detailed in their recent announcement.

Earlier, on February 23rd, the BitForex platform mysteriously went dark, following a significant outflow of funds, with reports indicating that $57 million had been moved from its hot wallets. Previously, in Japan, regulators took action against BitForex, citing its lack of proper registration to operate within the country.

According to the SFC, BitForex claims to be based out of Hong Kong. However, it has not secured a license from the SFC, nor has it sought to apply for one to run a Virtual Asset Trading Platform (VATP) in the region. Despite this, BitForex holds a license to operate within Canada.

In response to reports from individuals who are unable to access their accounts or withdraw assets after the BitForex site went down, the SFC has contacted the Hong Kong Police Force. They have requested the police to block access to the trading platform’s website links and associated social media profiles.

As of now, neither BitForex nor the Hong Kong police have provided comments regarding these developments.