Hong Kong police have arrested social media influencer Joseph Lam Chok in the present day (Monday) morning for his involvement with cryptocurrency buying and selling platform JPEX, which is dealing with allegations of fraud, in accordance with the South China Morning Put up.
The arrest got here hours after the troubled trade confirmed the suspension of buying and selling actions following a probe by Hong Kong’s Securities and Futures Fee (SFC).
“Because of the unfair remedy by related establishments in Hong Kong in the direction of JPEX, a cryptocurrency buying and selling platform, and a collection of unfavourable information, our partnered third-party market makers have maliciously frozen funds. They demanded extra info from the platform for negotiation, limiting our liquidity and considerably rising our every day working prices, resulting in operational difficulties,” the crypto trade wrote in a weblog put up printed yesterday (Sunday).
One other FTX?
Hong Kong’s monetary markets regulator issued a warning in opposition to JPEX final week, highlighting that the trade falsely claimed to have utilized for a license with the regulator. On its web site, the trade claims to be licensed by securities authorities in Australia and has registration with the US Monetary Crimes Enforcement Community (FinCEN) as a Cash Providers Enterprise (MSB). Nonetheless, the SFC highlighted that these claims are false.
The Hong Kong regulator additional mentioned that JPEX promoted “its services and products to the Hong Kong public by social media influencers and key opinion leaders (KOLs) in addition to over-the-counter digital asset cash changers (OTC Outlets),” including that it has requested all of them to stop the promotions.
Actions in opposition to Influencers
The arrest of Lam got here after the Hong Kong police revealed on Saturday that they’d obtained at the very least 83 complaints associated to the trade involving cryptocurrencies price about HK$34 million (US$4.3 million).
Hong Kong’s Social Media Sensation, Joseph Lam, Arrested in Daring HK$34 Million JPEX Crypto Scandal! pic.twitter.com/zSUlXRZRTM
— Crypto College (@TheCryptoU) September 18, 2023
Lam, a lawyer-turned-influencer, is now being questioned by the Hong Kong police, who additionally raided his workplace premises. In accordance with the native publication, the police seized many issues in a number of packing containers, together with a plastic bag of banknotes.
In the meantime, JPEX moreover vacated its Taipei workplace, and the authorities are questioning native influencers who promoted the trade, in accordance with an area information outlet. An X.com (previously Twitter) consumer additional identified that JPEX deserted its sales space final week on the second day of the Token2049 convention held in Singapore, following the SFC’s warning.
The Platinum sponsor, JPEX, deserted their sales space at #Token2049 on the second day. 👀
On a aspect be aware, their emblem appears fairly just like FTX. Is {that a} signal? 🤔 pic.twitter.com/KZw9o5vNgF
— J O Y (@joyxspacelatte) September 14, 2023
“Because of the third-party market makers limiting our liquidity and to adjust to coverage pointers, all transactions on our Earn Buying and selling interface will likely be delisted on September 18, 2023, at 00:00 (GMT+8),” the troubled trade added in its weblog put up. “Throughout this era, our devoted withdrawal staff accountable for dealing with emergency withdrawal requests will proceed to prioritize customers’ wants.”
Hong Kong police have arrested social media influencer Joseph Lam Chok in the present day (Monday) morning for his involvement with cryptocurrency buying and selling platform JPEX, which is dealing with allegations of fraud, in accordance with the South China Morning Put up.
The arrest got here hours after the troubled trade confirmed the suspension of buying and selling actions following a probe by Hong Kong’s Securities and Futures Fee (SFC).
“Because of the unfair remedy by related establishments in Hong Kong in the direction of JPEX, a cryptocurrency buying and selling platform, and a collection of unfavourable information, our partnered third-party market makers have maliciously frozen funds. They demanded extra info from the platform for negotiation, limiting our liquidity and considerably rising our every day working prices, resulting in operational difficulties,” the crypto trade wrote in a weblog put up printed yesterday (Sunday).
One other FTX?
Hong Kong’s monetary markets regulator issued a warning in opposition to JPEX final week, highlighting that the trade falsely claimed to have utilized for a license with the regulator. On its web site, the trade claims to be licensed by securities authorities in Australia and has registration with the US Monetary Crimes Enforcement Community (FinCEN) as a Cash Providers Enterprise (MSB). Nonetheless, the SFC highlighted that these claims are false.
The Hong Kong regulator additional mentioned that JPEX promoted “its services and products to the Hong Kong public by social media influencers and key opinion leaders (KOLs) in addition to over-the-counter digital asset cash changers (OTC Outlets),” including that it has requested all of them to stop the promotions.
Actions in opposition to Influencers
The arrest of Lam got here after the Hong Kong police revealed on Saturday that they’d obtained at the very least 83 complaints associated to the trade involving cryptocurrencies price about HK$34 million (US$4.3 million).
Hong Kong’s Social Media Sensation, Joseph Lam, Arrested in Daring HK$34 Million JPEX Crypto Scandal! pic.twitter.com/zSUlXRZRTM
— Crypto College (@TheCryptoU) September 18, 2023
Lam, a lawyer-turned-influencer, is now being questioned by the Hong Kong police, who additionally raided his workplace premises. In accordance with the native publication, the police seized many issues in a number of packing containers, together with a plastic bag of banknotes.
In the meantime, JPEX moreover vacated its Taipei workplace, and the authorities are questioning native influencers who promoted the trade, in accordance with an area information outlet. An X.com (previously Twitter) consumer additional identified that JPEX deserted its sales space final week on the second day of the Token2049 convention held in Singapore, following the SFC’s warning.
The Platinum sponsor, JPEX, deserted their sales space at #Token2049 on the second day. 👀
On a aspect be aware, their emblem appears fairly just like FTX. Is {that a} signal? 🤔 pic.twitter.com/KZw9o5vNgF
— J O Y (@joyxspacelatte) September 14, 2023
“Because of the third-party market makers limiting our liquidity and to adjust to coverage pointers, all transactions on our Earn Buying and selling interface will likely be delisted on September 18, 2023, at 00:00 (GMT+8),” the troubled trade added in its weblog put up. “Throughout this era, our devoted withdrawal staff accountable for dealing with emergency withdrawal requests will proceed to prioritize customers’ wants.”
