The Securities and Futures Commission (SFC) today warns the public of an entity operating under the name of Proxinex for suspected virtual asset-related fraud (Note 1).
Investors reported difficulties in withdrawing virtual assets from Proxinex, and they were later told that their “accounts did not exist” at all. The SFC also suspects that Proxinex recruited an agent to lure investors into depositing funds with Proxinex via dating apps. The agent may have fabricated documents purportedly issued by a local financial regulator and a financial institution to embellish the agent’s personal profile (Note 2).
The SFC posted Proxinex and its respective website on the SFC’s Suspicious Virtual Asset Trading Platforms Alert List on 29 July 2024. While the website is now inaccessible, the public should beware of websites with similar domain names which may be continuously created.
Online investment scams may involve any type of assets and are perpetrated through multiple channels, and investors can suffer substantial losses. Therefore, investors should stay vigilant and beware of fraud when making investment decisions.
Notes:
- Proxinex operates its website at hxxps://proxinex[.]com/.
- The fabricated documents include, among others, an income certificate purported to be issued by a financial institution in Hong Kong and a letter purported to be issued by a financial regulator in Hong Kong.
