Internet Celebrity Arrested for Promoting Unregulated Crypto Platform JPEX
Hong Kong police have arrested Lam Zuo, an internet celebrity, for promoting the unregulated crypto platform JPEX. The Securities and Futures Commission (SFC) had previously issued warnings against the trading platform, which has received 83 complaints since then, putting around HK$34 million (US$4.3 million) in digital assets at risk.
The SFC has stated that JPEX is not regulated in Hong Kong and that its trading volume is unregulated. Additionally, the platform has not applied for a license from the Dubai-based company. The regulator has cautioned against JPEX’s promotions, claiming them to be “too good to be true.”
JPEX recently increased its withdrawal fees, reaching up to 980 USDT per withdrawal. The company’s booth at the Token 2049 conference in Singapore has also been vacated.
JPEX Blames Partner Market Makers for Liquidity Crisis
JPEX announced that its recent increase in operation costs is due to partner market makers “maliciously” freezing the company’s digital assets. The exchange is currently negotiating with these third-party market makers to resolve the liquidity shortage. However, details will only be disclosed after the negotiations are concluded.
The liquidity crisis has led to a significant surge in trading and withdrawal fees on JPEX. The exchange holds its partners accountable for this situation.
Hot Take: Hong Kong Internet Celebrity Arrested for Promoting Unregulated Crypto Platform
A popular internet celebrity in Hong Kong has been arrested by the police for promoting an unregulated crypto platform called JPEX. This arrest comes after warnings were issued by the Securities and Futures Commission (SFC) against the trading platform. The SFC has stated that JPEX is not regulated in Hong Kong and has cautioned against its promotions, which were deemed “too good to be true.” The platform has also faced numerous complaints, putting millions of dollars’ worth of digital assets at risk. JPEX recently increased its withdrawal fees, and its booth at a conference in Singapore has been vacated. The exchange blames partner market makers for a liquidity crisis that has resulted in higher fees for traders.
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