JPEX Faces 1,408 Fraud Complaints, Leads to Six Arrests
The Hong Kong Police have arrested six people linked to the halted cryptocurrency exchange JPEX, after receiving a significant amount of fraud complaints.
Yesterday, JPEX suspended transactions on its Hong Kong platform, attributing the action to what it perceives as “unfair treatment by relevant institutions,” placing responsibility on its third-party market makers.
JPEX Receives A Staggering Amount Of Fraud Complaints
A recent local report reveals that the Hong Kong Police have taken action, arresting four men and two women suspected of having connections to the troubled exchange JPEX.
Notably, two of these individuals are recognized influencers, Joseph Lam Chok and Chan Wing-yee.
According to the report, authorities have been inundated with a staggering 1,408 complaints alleging fraudulent activities related to JPEX. The amount reportedly involved totals approximately HK$1 billion, roughly equivalent to $128 million USD.
The Hong Kong Securities and Futures Commission (SFC) has recently taken regulatory measures by issuing a license-related warning against JPEX. It cited its operation without a proper license or any intention to apply for one as the core reason.
On the same day as the arrests, JPEX announced that it had been actively preparing to comply with Hong Kong’s cryptocurrency regulatory requirements before “the end of the grace period for the licensing system.” However, it claims that it has been unfairly treated in comparison to other exchanges in the region:
“However, the SFC did not fulfil its promises. When other cryptocurrency exchanges announced their entry into the Hong Kong market and began extensive promotion, JPEX was subjected to continuous unfair treatment.”
This came just one day after JPEX provided its users with an explanation for the sudden interruption of its services.
On September 17, JPEX released a statement informing its users that it halted all transactions on its Earn transaction service. Effective over the next 24 hours. It attributed the suspension of the service to a liquidity shortage caused by third-party market makers. It further explained that to stay stable, it must make changes to the structure.
JPEX will withhold any details until they have finalized all the necessary information.
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