On 29 Jul 2024, the Securities and Futures Commission (SFC) issued a public warning regarding Proxinex, an entity suspected of engaging in virtual asset-related fraud. The alert comes in response to numerous reports from investors who have encountered significant difficulties when attempting to withdraw virtual assets from Proxinex. In many instances, investors were informed that their “accounts did not exist,” raising serious concerns about the legitimacy of the platform.
The SFC has uncovered troubling evidence that suggests Proxinex recruited an agent to entice investors to deposit funds via dating apps. This agent allegedly fabricated documents, including an income certificate purportedly issued by a financial institution in Hong Kong and a letter purportedly issued by a local financial regulator. These falsified documents were used to bolster the agent’s personal profile, thereby gaining the trust of potential investors and luring them into the fraudulent scheme.
In response to these alarming developments, the SFC has placed Proxinex and its website on the SFC’s Suspicious Virtual Asset Trading Platforms Alert List as of 29 July 2024. Although the Proxinex (website – hxxps://proxinex[.]com/) is currently inaccessible, the public is advised to remain vigilant and be cautious of websites with similar domain names, as these may be created continuously to perpetuate the scam.
The SFC emphasizes that online investment scams can involve any type of assets and may be executed through various channels, potentially leading to substantial financial losses for investors. Given the sophisticated nature of these scams and the lengths to which fraudsters will go to deceive potential victims, it is crucial for investors to exercise heightened vigilance and caution when making investment decisions. The SFC strongly advises the public to thoroughly verify the legitimacy of investment platforms and to be wary of any unsolicited investment opportunities, particularly those that seem too good to be true.
The SFC’s warning serves as a stark reminder of the risks associated with virtual asset investments and underscores the importance of regulatory oversight in protecting investors from fraudulent schemes. By bringing such issues to light and taking decisive action against suspected fraudsters, the SFC aims to maintain the integrity of Hong Kong’s financial markets and safeguard the interests of investors.
The SFC’s investigation into Proxinex brought forward a complex and deceptive scheme designed to defraud investors through falsified documents and misleading information. The public is urged to remain cautious and to report any suspicious activities to the relevant authorities to prevent further victimization by such fraudulent entities.
(Source: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR129)
