Hong Kong’s financial markets warn of online platforms risks

• Cryptocurrency market is in a lot of trouble.
• Investors are at high risk due to current crypto market crash.
• Bitcoin has lost more than 60% of its value.

The Securities and Futures Commission (SFC) said in a statement, “Investors should be aware of the possible high risks” that come with so-called “virtual asset arrangements.”

The announcement comes at a time when the cryptocurrency market is in a lot of trouble.

The founder of FTX, a failed cryptocurrency exchange, was arrested and charged this week.

“Even though some VA Arrangements are often called “deposits” or “savings” products, they are not regulated and are not the same as bank deposits. Investors have no way to protect themselves “said the SFC.

“They shouldn’t invest if they can’t fully understand the risks and be willing to lose a lot of money or lose everything,” it said.

Sam Bankman-Fried, who started the failed cryptocurrency exchange FTX, was arrested on Monday in The Bahamas.

Within hours, he was charged with “one of the biggest financial frauds in US history” by US authorities.

Gary Gensler, who is in charge of the Security and Exchange Commission (SEC), said that the former CEO of FTX built a “house of cards on a foundation of lies.”

Later on Tuesday, a judge in the Bahamas said that Mr. Bankman-Fried could not get bail.

Bahamas Chief Magistrate JoyAnn Ferguson-Pratt turned down his request to be released on bail because he had a “great” chance of running away. Instead, she said he should stay in jail until February 8.

We saw some withdrawals today (net $1.14b ish). We have seen this before. Some days we have net withdrawals; some days we have net deposits. Business as usual for us.

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I actually think it is a good idea to “stress test withdrawals” on each CEX on a rotating basis. 💪

1/2 https://t.co/uF9lLPDSyS

— CZ 🔶 Binance (@cz_binance) December 13, 2022

The rival exchange Binance, which said it would “temporarily pause” withdrawals of the USDC stablecoin, has seen more than $1 billion taken out in the last 24 hours.

Nansen, a blockchain data company, said that users of the largest cryptocurrency exchange in the world had taken out $1.9 billion from the platform.

Changpeng Zhao, who is the CEO of Binance and is better known as CZ, put the number at about $1.14 billion.

“Some days, we make more money than we take out, and some days, the opposite is true. The same old thing for us, “In a tweet, he said.

Cryptocurrencies are not currencies in the usual sense. Instead, they are stored online and act more like investment vehicles or securities, often with a high degree of volatility.

Because of their anonymity, criminals like to use them for things like drug dealing and ransomware attacks, but their supporters say there is a lot of room for innovation and freedom from governments.

This year, Bitcoin, the largest cryptocurrency in the world, has lost more than 60% of its value, and other digital assets have also dropped sharply.

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