The Securities and Futures Commission (SFC) in Hong Kong warned the public to beware of entities operating under the names of “LonShiX” and “Bitbank (Global) Financial Holding Group,” suspected of “engaging in fraudulent activities purporting to be related to virtual assets.”
The SFC notes that LonShiX claims “to be located in Hong Kong with a fake address on its website.”
Through individuals falsely claiming to be investment professionals authorized by banks on social media platforms and instant messaging apps, LonShiX lures investors “to open investment accounts.”
The SFC notes that Bitbank (Global) Financial Holding Group has “adopted a name that is very similar to that of a cryptocurrency exchange based in Japan, when in fact they are not associated.”
The SFC also suspects “that Bitbank (Global) Financial Holding Group may have disseminated false and misleading information about itself and its business through online channels, including its website and social media platforms, claiming that it has obtained SFC licenses and begun to apply for a virtual asset service provider’s license.”
None of the above claims is true, but they may give “a false and misleading impression that Bitbank (Global) Financial Holding Group’s services and business are properly licensed and legitimate, inducing others to trade on its platform.”
At the SFC’s request, the Hong Kong Police Force has “taken steps to block access to the websites of LonShiX and Bitbank (Global) Financial Holding Group, as well as the relevant X accounts.”
LonShiX, Bitbank (Global) Financial Holding Group and their websites were posted “on the SFC’s Suspicious Virtual Asset Trading Platforms Alert List on 20 December 2023.”
The SFC once again takes this opportunity to warn the public to 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.”
LonShiX claims to “offer digital currency, foreign exchange and other investment services through its platform.”
Bitbank (Global) Financial Holding Group claims “to be a digital asset trading platform at the websites of www.bitbank.world and bitbanksupport.zendesk.com/hc/en-us.”
It has claimed to have “obtained Type 1 (dealing in securities), Type 4 (advising on securities) and Type 9 (asset management) licenses.”
It has also claimed to “have applied for Type 7 (providing automated trading services) and virtual asset service provider licenses in June 2023.”