Hong Kong Police Arrest Six Individuals Linked to JPEX Cryptocurrency Trading Platform
The Hong Kong police have arrested four men and two women, including influencer Joseph Lam Chok, in connection with the cryptocurrency trading platform JPEX. The arrests were made following 1,408 fraud complaints related to JPEX, and evidence such as a laptop and cash was seized. The estimated amount involved in the fraud is approximately HK$1 billion.
Crypto Influencers Involved
Joseph Lam Chok, a former lawyer turned insurance broker with a substantial Instagram following, was among those arrested. His license as an individual insurance intermediary was suspended earlier this year. Another influencer, Chan Wing-yee, was also detained under suspicion of involvement in the fraud.
The police conducted a raid at Lam’s office and seized containers filled with evidentiary materials, including a plastic bag containing banknotes. Additionally, they searched the office of an over-the-counter virtual asset money changer. The investigation is ongoing, and further arrests may follow.
Deceptive Statements and Misleading Information
The Securities and Futures Commission (SFC) revealed that JPEX had relied on deceptive statements from key opinion leaders (KOLs) who were paid promoters. These KOLs and over-the-counter shops spread false or misleading information on social media about JPEX’s licensing status in Hong Kong.
The SFC has communicated its concerns to the relevant KOLs and OTC shops, urging them to stop promoting JPEX’s services and products. JPEX itself has halted crypto transactions on its Hong Kong platform due to “negative news” and alleged unfair treatment by institutions.
Hot Take: Crackdown on Cryptocurrency Fraud Continues
The arrest of individuals connected to the JPEX cryptocurrency trading platform highlights the ongoing crackdown on fraudulent activities in the crypto industry. Influencers and over-the-counter shops have been instrumental in promoting deceptive information, leading to financial losses for investors.
Regulatory authorities like the Securities and Futures Commission are taking action against such practices and urging individuals and businesses to cease their involvement in fraudulent schemes. As the crypto market continues to grow, it is crucial for investors to exercise caution and conduct thorough research before engaging with any trading platforms or investment opportunities.
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