Police Investigations Underway
The Hong Kong police have recently been swamped with a flood of complaints against the cryptocurrency exchange, JPEX. With 83 complaints logged and assets valued at HK$34 million (US$4.3 million) in question, concerns over the platform’s operations are mounting.
Police Commissioner Raymond Siu Chak-yee made it public that the city’s primary financial regulator, the Hong Kong Securities and Futures Commission (SFC), registered a police report regarding the exchange’s activities. He further revealed that the investigative unit responsible for economic crimes is probing into the matter.
SFC Issues a Warning
Earlier in the week, the SFC warned potential investors about JPEX’s operations, highlighting that the exchange hadn’t initiated any license application process. The watchdog urged the public to tread cautiously and remain skeptical of deals that appeared overly enticing. Moreover, it’s been brought to light that JPEX falsely announced having acquired licenses from international regulatory bodies. The platform also promised significant returns on investment products, potentially luring unsuspecting investors.
The Role of Social Media Influencers
In a move that raises eyebrows, JPEX leveraged statements from social media personalities who, according to the SFC, are often remunerated promoters. Such influencers can generate hype, thereby putting inexperienced investors at risk. It’s worth noting that since last July, two entities affiliated with JPEX have made it to the SFC’s alert list, implying the platform might be courting Hong Kong-based investors without the required credentials.
Withdrawal Issues and Token Sale Concerns
Following the SFC’s warning, numerous JPEX users have experienced difficulties when attempting to pull out their virtual assets. The administrator of the platform’s community raised concerns about JPEX offloading tokens to an increasing clientele, even though they might have a restricted USDT pool. The aggressive marketing tactics buoyed by social media influencers further exacerbate the risks.
JPEX’s Footprint in Hong Kong and Taiwan
Having set its foundation in Hong Kong over two years ago, JPEX has been on a promotional spree, evident from its advertisements spread across prime MTR stations such as Central and Causeway Bay. Earlier this year, their promotional endeavors expanded to Taiwan, with celebrity Nine Chen endorsing the platform. However, Chen has since confirmed his association with JPEX terminated in July.
Amidst all these developments, the company’s ownership and headquarters remain shrouded in mystery due to its non-transparent corporate structure.
