Hong Kong police have taken into custody a well-known internet celebrity on suspicion of promoting the controversial cryptocurrency exchange known as JPEX. The individual apprehended in connection with this case is Mr. Lin Zuo, and authorities have subsequently initiated a search of his company premises located on Queen’s Road Central in the heart of Hong Kong’s Central district.
This arrest comes on the heels of an escalating investigation into JPEX, a virtual asset trading platform that has drawn scrutiny from both financial regulatory bodies and law enforcement agencies. Hong Kong police have reported receiving more than 83 complaints against JPEX, collectively involving approximately HK$34 million (about USD $3.35 million).
Earlier, the Securities and Futures Commission (SFC) had referred suspicions of fraudulent activity involving JPEX to the police, sparking a public outcry. In response, the Hong Kong police established a dedicated hotline for citizens to report cases and seek information related to JPEX.
The SFC, in a recent statement, expressed its concern over the activities of JPEX, noting that the exchange aggressively promoted its services and products to the Hong Kong public through internet celebrities and over-the-counter outlets. The regulatory body emphasized that none of the entities within the JPEX group had been licensed by the SFC to operate virtual asset trading platforms in Hong Kong. This fact suggests that JPEX has been operating illegally in the region.
In the wake of these warnings and investigations, JPEX has made several adjustments to its operations and business policies. One significant change is the increase in withdrawal fees, now set at 980 USDT, along with a maximum withdrawal limit of 1,000 USD.
Prior to these developments, the SFC had issued a cautionary statement urging residents to exercise caution when encountering high-yield investment offers, citing JPEX’s promised interest rate of 21% as an example. The statement stressed that investors should be wary of individuals who are paid to promote such opportunities, as they are not necessarily financial experts.
Furthermore, it has come to light that JPEX’s representatives who were present at the Singapore 2049 event have mysteriously disappeared, further deepening the mystery surrounding the exchange.
Read more:
- Hong Kong Monetary Authority Explores Tokenizing Bank Deposits And Regulating Stablecoins
- Hong Kong SFC Warns Of Criminal Liability For Unregistered JPEX Cryptocurrency Exchange