Markets News Report
September 18, 2023

Hong Kong Authorities Arrest Internet Celebrity Suspected of Fraud Linked to JPEX Crypto Platform

In Brief

Hong Kong police arrested a Hong Kong internet celebrity on suspicion of promoting Rugpull crypto exchange JPEX.

In a significant development surrounding JPEX, a controversial virtual asset trading platform, Hong Kong police took internet celebrity Lam Tso into custody. The arrest follows a formal complaint against JPEX, referred to Hong Kong police by the China Securities Regulatory Commission, alleging fraudulent activities.

The authorities have established a special hotline for additional reporting and public inquiries.

What Happened to JPEX

The Securities and Futures Commission (SFC) of Hong Kong had previously issued a public warning regarding JPEX’s business practices. According to the commission, the platform was aggressively marketing its services to the local population through various means, including internet celebrities and over-the-counter trading firms.

However, the SFC clarified that JPEX, nor any of its affiliated companies, have secured the necessary licensure or even applied to be a regulated entity in Hong Kong’s virtual asset trading space.

The case is particularly concerning as JPEX had employed high-profile marketing tactics, engaging internet celebrities to promote its services.

This not only raises questions about the platform’s legitimacy but also poses potential risks to consumers who may be unaware of the regulatory requirements for such platforms in Hong Kong.

The arrest of Lam Tso and the ongoing investigation into JPEX highlight the regulatory challenges and enforcement issues that are becoming increasingly complex in the evolving world of virtual asset trading. As authorities dig deeper into JPEX’s operations, the case is likely to serve as a cautionary tale for investors and industry stakeholders.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

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Nik Asti
Nik Asti

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

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