Hong Kong Authorities Block Two Crypto Websites Suspected of Fraud - The Stock Market News (2024)

FAQs

Is Hong Kong's markets regulator issues warning against crypto exchange BitForex? ›

Hong Kong's Markets Regulator Issues Warning Against Crypto Exchange BitForex. Hong Kong's regulator for securities and futures markets has warned the public about cryptocurrency exchange BitForex for suspected fraud after it went dark in February.

They'll promise free cash or cryptocurrency, but free money promises are always fake. Scammers make big claims without details or explanations. No matter what the investment, find out how it works and ask questions about where your money is going.

Scammers have found creative ways to cheat investors out of their money, the BBB said in its annual report about the biggest scams of 2023, which is based on 67,000 reports of scams. About 80% of Americans targeted in crypto and investment scams last year lost money, the BBB reported.

Investors in Hong Kong stocks face significant Mainland market exposure risk when companies have substantial operations or revenue tied to Mainland China. This exposure brings about regulatory risks, political uncertainties, and vulnerability to Mainland China's economic conditions.

The Hong Kong Securities and Futures Commission has listed Bybit among suspicious crypto exchanges, warning the public about risks associated with 11 Bybit products. The regulator noted that Spark Fintech Limited, a separate Bybit entity incorporated in Hong Kong, was not involved in the activities that raised alerts.

Cryptocurrency payments typically are not reversible. Once you pay with cryptocurrency, you can only get your money back if the person you paid sends it back. But contact the company you used to send the money and tell them it was a fraudulent transaction.

Yes, it is possible to recover scammed cryptocurrency with legal action. However, it's essential to understand that crypto scam recovery services are not included in cryptocurrency tracing, which aims only to identify payment paths on the blockchain.

"Sam Bankman-Fried perpetrated one of the biggest frauds in American history, a multibillion-dollar scheme designed to make him the king of crypto," Damian Williams, U.S. attorney for the Southern District of New York, said in a news briefing following the verdict.

According to the Federal Trade Commission (FTC), adults ages 18 to 59 are more likely to report losing money to scams, with online-shopping fraud, cryptocurrency investment scams and job scams being the most common.

What happens if you get scammed out of crypto? ›

Typically, when you report a crypto scam, the government will track down the criminals and get your funds back for you.

According to Numbeo's crime index ranking of 142 countries and territories for 2023, Hong Kong ranks as the sixth safest place in the world, putting it above countries like Switzerland, Japan, and Denmark.

HKEX operates securities and derivatives markets that are open and free and welcomes the participation of investors from all over the world. However, overseas investors should comply with regulations governing overseas trading in their own countries or places of residence before trading in Hong Kong.

Hong Kong exists as a Special Administrative Region controlled by The People's Republic of China and enjoys its own limited autonomy as defined by the Basic Law. The principle of “one country, two systems” allows for the coexistence of socialism and capitalism under “one country,” which is mainland China.

Reportedly, on February 23, BitForex went offline after US$57 million worth of funds were withdrawn from the exchange's hot wallet. Soon, its users were met with a non-functional website displaying the message, “Sorry, you have been blocked.”

Users trying to access the site are met with a page that says: "Sorry, you have been blocked." Last year BitForex was flagged by Japanese regulators for operating without a license.

BitForex has not been licensed by the SFC or applied to the SFC for a licence to operate a virtual assets trading platform in Hong Kong.

HKEX is the operator of Hong Kong's central securities and derivatives marketplace and the front-line regulator of listed issuers (including listed companies).