In a recent crackdown, the Securities and Futures Commission (SFC) of Hong Kong has initiated regulatory actions against two firms, LonShiX and Bitbank (Global) Financial Holding Group, accusing them of engaging in fraudulent activities under the guise of cryptocurrency-related operations.
On December 20, the SFC issued a public advisory cautioning against these entities and urging vigilance from the public. LonShiX faces allegations of deceptive practices, including providing a fake address on its website, falsely claiming to be based in Hong Kong, and offering digital currency, foreign exchange, and other investment services. The SFC revealed that LonShiX attracts investors by promoting false claims of being endorsed by banking professionals, primarily through social media platforms and instant messaging apps.
Bitbank, on the other hand, has been accused of adopting a name strikingly similar to a legitimate crypto exchange in Japan, leading to potential confusion. The SFC alleges that Bitbank falsely asserted having obtained SFC licenses and initiating the application process for a virtual asset service provider’s license.
While emphasizing that these accusations are currently under investigation, the SFC has taken immediate measures to protect potential investors. At the regulator’s request, the Hong Kong Police Force has blocked access to LonShiX and Bitbank (Global) Financial Holding Group websites, along with relevant X accounts associated with them.
In addition to placing the websites of these entities on its Suspicious Virtual Asset Trading Platforms Alert List, the SFC has issued a public advisory urging caution regarding these companies. Investors are advised to avoid engagement with LonShiX and Bitbank, and to exercise caution when encountering dubious virtual asset-related investment advice or opportunities, especially on social media platforms. The regulatory actions underscore the commitment of the Hong Kong securities watchdog to maintaining the integrity of the crypto space and protecting investors from potential scams.
