Hong Kong SFC Flags Proxinex for Suspected Crypto-Related Fraud

• Hong Kong’s SFC has cracked down on a new crypto platform.
• The platform is suspected of fraud.
• Users reported difficulties when trying to withdraw funds from the platform.

Hong Kong’s Securities and Futures Commission (SFC) has warned the public to beware of Proxinex, a cryptocurrency platform suspected of engaging in fraud.   

The rise of crypto-related crimes in Hong has been notable recently. Today’s alert comes barely a day after Hong Kong police cracked down on a crypto crime syndicate accused of defrauding victims out of $1.4 million in digital assets. Four people, including a 14-year-old, were arrested in the case.  

SFC Adds Proxinex to Its Alert List

In a statement dated July 29, Hong Kong’s SFC suspected that Proxinex recruited an agent to lure investors into depositing funds into the platform via dating apps.

The agent allegedly embellished their profile using fabricated documents purportedly authorized by a financial regulator and an institution in Hong Kong. The forged documents included an income certificate and a letter.  

According to the statement, users who fell for the trick deposited funds with Proxinex, and it didn’t end well.

“Investors reported difficulties in withdrawing virtual assets from Proxinex, and they were later told that their “accounts did not exist” at all,” the statement read. “While the website is now inaccessible, the public should beware of websites with similar domain names which may be continuously created.”

Following the development, the SFC added Proxinex to its Suspicious Virtual Asset Trading Platforms Alert List and urged the public to stay vigilant about online investment scams purporting to offer opportunities in crypto.

SFC’s alert list has over 40 names designated as suspicious virtual asset trading platforms, including BitCloud, Bitget Pro, MEXC, BitForex, Bybit, JPEX, and others.

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