Hong Kong authorities detained an influential individual suspected of promoting an unregistered crypto exchange and participating in JPEX trading.
Moreover, law enforcement officials have revealed that they received more than 83 complaints concerning JPEX, leading to a financial loss of approximately HK$34 million up until now.
Hong Kong police have arrested a Hong Kong internet celebrity on suspicion of promoting Rugpull crypto exchange JPEX. At present, the Hong Kong police have received more than 83 reports against JPEX, involving approximately HK$34 million. https://t.co/gmYi68Uwxn
— Wu Blockchain (@WuBlockchain) September 18, 2023
Joseph Lam Chok, a prominent social media influencer and insurance manager, faced legal trouble. He was apprehended for involvement with JPEX.
According to allegations, Lam Chok promoted JPEX by encouraging potential investors to create accounts and convert their funds into cryptocurrency. Despite claiming to be a partner of JPEX, it has been revealed that he held no shares within the company.
Reports indicate that officers searched Chok’s office, accompanying him out of the building alongside two fellow officers. During the search, they uncovered boxes containing what appeared to be “evidence,” including many banknotes.
Recently, a statement from the Securities and Futures Commission was released. In the information, they observed that JPEX actively promotes its services and products to the people of Hong Kong.
The SFC also mentioned that the cryptocurrency exchange utilizes internet celebrities and “over-the-counter” exchange shops.
JPEX Crypto Exchange Faces Fraud Allegations in Hong Kong
The SFC reports that it has not licensed the JPEX Group and its entities. Furthermore, the crypto exchange has yet to apply for a license to operate a virtual digital asset trading platform in Hong Kong.
The police announced that they had received a fraud-related referral from the China Securities Regulatory Commission concerning the crypto exchange. In response, they established a hotline and reported receiving over 83 public reports.
The commission stated that the trading platform had claimed to hold licenses from foreign regulators and promised lucrative returns on savings products.
However, regulators cautioned the public about JPEX, emphasizing the dissemination of false and misleading information on the company’s website.
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In addition, the statement revealed that JPEX relied on social media influencers to promote its product or service. Paid promoters often influence and share misleading information with their followers.