The Securities and Futures Commission (SFC) of Hong Kong has issued a public warning about two entities, LonShiX and Bitbank (Global) Financial Holding Group, for suspected virtual asset-related fraud.

The SFC has identified LonShiX as claiming a fake Hong Kong address on its website and using individuals who falsely present themselves as authorised investment professionals on social media and messaging apps to attract investors.

Additionally, concerns have been raised about Bitbank (Global) Financial Holding Group, which has adopted a name similar to that of a legitimate Japanese cryptocurrency exchange, without any actual affiliation.

This entity is suspected of spreading false and misleading information online, including unverified claims of having obtained various SFC licenses and initiating applications for a virtual asset service provider’s license.

In response to these concerns, the Hong Kong Police Force, at the SFC’s request, has blocked access to the websites and associated accounts of both LonShiX and Bitbank (Global) Financial Holding Group.

These entities have also been added to the SFC’s suspicious virtual asset trading platforms’ alert list at present.

The SFC urges the public to exercise caution and remain vigilant against “too-good-to-be-true” investment opportunities, particularly those promoted on social media and through instant messaging platforms. Investors are advised to be wary of potential fraud when making investment decisions.

Hong Kong was recently rocked by two major crypto scandals; the JPEX incident saw 2,623 people losing around HK$1.6 billion and Hounax where losses amounted to HK$120 million.