Hong Kong’s Securities and Futures Commission (SFC) today warned the public about seven entities suspected of engaging in fraudulent activities allegedly related to virtual assets.
The entities in question are:
- XTCQT?
- CEG?
- BTEPRO?
- Bitones.org;
- Yomaex Crypto Market Limited (aka “Yomaex”).
- Bstor (also known as “Bstorest”);
- Taurusemex.
The SFC notes that the suspicious entities purported to provide cryptocurrency trading services and some of them used social media platforms or instant messaging applications to refer investors to their respective websites to register as users to invest in cryptocurrencies.
Investors have reported withdrawal problems with the suspicious entities. In some cases, suspicious entities would claim that money laundering activities or illicit funds were involved in investor accounts and therefore suspended withdrawals. Investors were required to pay exorbitant “fees” or “taxes” for withdrawals or reactivation of suspended accounts.
One of the suspicious entities, Taurusemex, also falsely claimed that investors’ accounts were regulated by the SFC.
At the request of the SFC, the Police have taken steps to block access to relevant websites. Despite the actions taken, the public should be aware that fraudsters may continue to create websites with similar domain names.
Online investment scams can involve any type of asset and are perpetrated through multiple channels, and investors may suffer significant losses. The public should be wary of too-good-to-be-true investment opportunities and advice posted on social media platforms and through instant messaging applications. Investors should remain vigilant and watch out for fraud when making investment decisions.