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In the latest crypto scandal to hit Hong Kong, investors are reeling after BitForex, an exchange that disappeared in February, allegedly made off with $57 million in customer deposits. The exchange, which claimed to have offices in Hong Kong, has left investors with little hope of recovering their funds.
According to police officials, the city’s Commercial Crime Bureau is currently investigating BitForex. However, the exchange’s CEO, Jason Luo, has gone quiet, with documents revealing that he is based in mainland China, where trading in virtual assets is illegal.
Investors like Carl, a crypto investor and research analyst in Australia, have been left shocked by the sudden disappearance of BitForex. “People saw their deposits and funds being stolen in real time,” Carl told DL News. “All while the team kept repeating, ‘Don’t worry, It’s just maintenance, BitForex will be back again soon.’ But they never came back. Four hours later they locked their doors and completely disappeared.”
The Hong Kong Securities and Futures Commission has issued a warning to investors not to use the platform, as BitForex has not been licensed by the SFC to operate a virtual assets trading platform in Hong Kong.
Investors are now desperate for answers and are questioning the whereabouts of CEO Jason Luo. Despite co-founding the exchange in 2017, Luo stepped down as CEO just weeks before BitForex disappeared, leaving users skeptical of the timing.
As the investigation into BitForex continues, investors are left grappling with heavy losses and uncertainty about the future of their funds. Stay tuned for more updates on this developing story.