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The JPEX fraud case began last week when the SFC received 1,400 complaints. People were concerned about possible cheating, inability to withdraw their money, and decreasing digital wallet balances.

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Hong Kong regulators are getting stricter with cryptocurrency trading after six individuals were arrested in connection with an unlicensed crypto exchange called JPEX.

The Chief Executive of Hong Kong, John Lee Ka-chiu, stated on September 19 that the government will work harder to inform investors. They want people to use platforms that have received licenses from the Securities and Futures Commission (SFC).

The issue with JPEX became public when the SFC received more than 1,000 complaints about unregistered crypto exchanges. Customers claimed to have lost over $128 million (1 billion Hong Kong dollars) because of this fraudulent exchange.

The SFC warned that JPEX was actively promoting its services to the Hong Kong public through online celebrities and money changers.

After the SFC’s warning, many JPEX users had trouble withdrawing their money, and some saw their digital wallet balances decrease. The exchange also raised its withdrawal fee to $10,000 to discourage users from taking out their assets.

Crypto Exchange Blames Third-Party Market Makers for Liquidity Crisis

The crypto exchange later pointed fingers at third-party market makers for the ongoing liquidity troubles on their platform, which led to the increase in withdrawal fees.

The Hong Kong police arrested influencer Joseph Lam (Lin Zuo) for his association with the crypto exchange JPEX.

Hong Kong’s Growing Crypto Hub Faces Challenges

Hong Kong has been emerging as a crypto hub in 2023, working on pro-crypto laws and opening the crypto market to regular customers. However, unlicensed platforms like JPEX have deceived many users due to a lack of knowledge. Regulators are now focusing on educating people about using licensed platforms for their crypto trading.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

#Bitcoin #CryptoNews #cryptomarket #HongKong #JPEX

CryptosHeadlines.com - The Leading Crypto Research Network

Local media reported that Hong Kong police had arrested at least 11 individuals in connection with the suspected fraud case.

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Hong Kong authorities have told local telecom companies to block access to JPEX, the troubled cryptocurrency exchange. Local police have arrested at least 11 people and conducted raids at many locations, seizing assets related to the case.JPEX released a statement, saying that Hong Kong’s Securities and Futures Commission (SFC) has unreasonably blocked their mobile app and official website. They claim that the SFC made accusations about their platform’s operation and promotion methods without conducting an investigation.
With their platform blocked in Hong Kong, JPEX advised users to use a virtual private network (VPN) service to access their platform. They emphasized that despite these challenges, their platform would continue to operate as usual, and users could log in using VPN applications like Surfshark.
Increased Enforcement
The police investigation into JPEX followed warnings from the SFC about crypto influencers and the platform spreading false information on social media, particularly regarding JPEX’s supposed application for a virtual asset trading license in Hong Kong.
JPEX recently suspended some of its operations and increased withdrawal fees due to an ongoing liquidity crisis.
As of Monday night, the police had received 1,641 complaints related to the JPEX case. These complaints alleged that users were unable to withdraw their holdings from the exchange, involving assets worth around HK$1.19 billion ($152 million).
JPEX to Launch DAO Stakeholders Dividend Plan
JPEX has announced a “DAO Stakeholders Dividend Plan” in response to recent developments.
Under this plan, JPEX users can convert their platform assets into DAO stakeholder dividends at a 1:1 ratio. The exchange will distribute 49% of the DAO Stakeholder dividends, totaling approximately 400,000,000 USDT for subscription and conversion. Repurchase options will also be offered one year and two years laterAdditionally, new users will receive double payouts if they subscribe to these DAO stakeholder dividends. JPEX assures that subscribers won’t bear all the operational responsibilities of the platform.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

#Bitcoin #CryptoNews #cryptomarket #HongKong #JPEX

CryptosHeadlines.com - The Leading Crypto Research Network

Following the ongoing JPEX scandal, the Hong Kong Securities and Futures Commission plans to create a list of crypto trading platforms that seem suspicious and make it available to the public.
The Securities and Futures Commission (SFC) in Hong Kong, an important financial regulator, is determined to crack down on unregulated cryptocurrency trading platforms operating within its jurisdiction.
In an announcement made on September 25, the SFC stated that it would create a comprehensive list. This list would include all licensed, deemed licensed, closing down, and pending-application virtual asset trading platforms (VATPs). The purpose is to make it easier for the public to spot potentially unregulated VATPs operating in Hong Kong.
Additionally, the SFC will maintain a separate list specifically for “suspicious VATPs.” This list will be prominently displayed on the regulator’s website, ensuring easy access for anyone looking for this information.
Hong Kong’s Response to JPEX Scandal
Hong Kong has introduced new rules in response to the JPEX crypto exchange scandal, which local media has called one of the region’s worst financial fraud cases. JPEX is accused of providing services to Hong Kong residents without the required license.
At a press briefing on September 25, Kit Wilson, the SFC’s Director of Enforcement, discussed the situation. He mentioned that due to evasive behavior and unsatisfactory responses from those involved, JPEX was put on the SFC’s alert list in July 2022.
Investigation and Formal Warning
The SFC launched a complex investigation, involving various parties across different places. It escalated in April 2023 after an official investor complaint. When the Anti-Money Laundering Ordinance (AMLO) came into full effect in June 2023, they started a more formal fraud investigation. This led to a formal warning issued on September 13 and the case being handed over to the police.
Financial Impact and Arrests
The financial losses linked to the JPEX scandal are estimated at about $178 million. Local police have received over 2,200 complaints from affected users. 11 individuals, including crypto influencers, YouTubers, and employees of the alleged fraudulent exchange, have been detained for questioning.
SFC’s Response to JPEX Fallout
In an official statement, the SFC emphasized that the consequences of the JPEX case underscore the dangers of engaging with unregulated virtual asset trading platforms (VATPs) and highlight the necessity for appropriate regulations to uphold market trust.Additionally, the regulators announced their collaboration with local law enforcement to create a dedicated channel for citizens to report information related to suspicious activities and possible legal violations by VATPs. They are also committed to conducting a more thorough investigation into the JPEX incident to assist in bringing those responsible for wrongdoing to justice.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

#CryptoMarket #Bitcoin #CryptoNews #HongKong #JPEX