Hong Kong law enforcement officials have arrested crypto influencer Joseph Lam Chok for selling the JPEX crypto platform, South China Morning Submit reported on Sept. 18.
Per the report, the police questioned the social media superstar, and his firm on the Leisure constructing in Central was raided.
JPEX is a crypto platform believed by many to have been rug-pulled. The Hong Kong police claimed it obtained greater than 80 complaints in regards to the trade, with prospects saying they misplaced about $34 million.
The police had earlier mentioned that the China Securities Regulatory Fee (CSRC) referred the case to it, main the company to arrange a hotline for the general public to report incidents.
The CSRC mentioned that JPEX promoted its providers utilizing a number of entities, none registered with the regulatory authorities in China or Hong Kong.
The arrest comes after JPEX introduced that it’ll pause its Earn Buying and selling transactions on Sept. 18. The Japanese trade mentioned that the halt will imply customers can not place new earn orders, however the present ones will proceed to generate rewards till their finish date.
JPEX has been suspending a few of its providers because it faces issues about whether or not it has licenses for regulated operations. The Hong Kong Securities and Futures Fee just lately questioned its yield providing on USDT. In response, the trade raised USDT withdrawal charges to maintain most funds.
In the meantime, Hong Kong authorities have been cracking down on crypto scams and unregistered exchanges, particularly after its new crypto regulatory regime grew to become efficient in June 2023.
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