The Securities and Futures Commission (SFC) of Hong Kong today warned the public of seven entities suspected of engaging in fraudulent activities purported to be related to virtual assets.
The entities in question are:
- XTCQT;
- CEG;
- BTEPRO;
- Bitones.org;
- Yomaex Crypto Market Limited (also known as “Yomaex”);
- Bstor (also known as “Bstorest”);
- Taurusemex.
The SFC notes that the suspected entities purport to provide cryptocurrency trading services and some of them utilised social media platforms or instant messaging apps to refer investors to their respective websites to register as a user for investment in cryptocurrencies.
Investors have reported withdrawal issues with the suspected entities. In some cases, the suspected entities would claim money laundering activities or illegal funds were involved in investors’ accounts and thus suspend withdrawals. Investors were required to pay exorbitant “fees” or “tax” for withdrawals or reactivation of suspended accounts.
One of the suspected entities, Taurusemex, also falsely claimed that investors’ accounts were regulated by the SFC.
At the SFC’s request, the Police has taken steps to block access to relevant websites. Notwithstanding the action taken, the public should beware that scammers may continue to create websites with similar domain names.
Online investment scams may involve any type of assets and are perpetrated through multiple channels, and investors may suffer substantial losses. The public should be cautious about too-good-to-be-true investment opportunities and advice posted on social media platforms and via instant messaging apps. Investors should stay vigilant and beware of fraud when making investment decisions.
