1 year ago
A fraud probe of cryptocurrency speech JPEX successful Hong Kong has led to the shutdown of immoderate trading activities connected the platform, the apprehension of aggregate people, and accrued regulatory scrutiny of the full crypto sector. “This incidental highlights the value that erstwhile investors privation to put successful virtual assets, past they indispensable put connected platforms that are licensed,” Hong Kong Chief Executive John Lee stressed.
Crypto Exchange JPEX’s Troubles Continue
Cryptocurrency speech JPEX announced Monday that it has suspended immoderate trading activities connected its platform. This determination comes arsenic the Hong Kong constabulary persist successful their probe of the exchange. The announcement explains that users volition beryllium incapable to make caller orders done the platform’s Earn Trading interface. The speech claimed that it was “negotiating with … third-party marketplace makers to resoluteness the liquidity shortage.”
On Tuesday, Hong Kong Chief Executive John Lee said astatine a quality conference:
This incidental highlights the value that erstwhile investors privation to put successful virtual assets, past they indispensable put connected platforms that are licensed.
Lee emphasized that the Hong Kong Securities and Futures Commission (SFC) “will show the concern precise intimately and guarantee that investors are sufficiently protected.” He further noted that the authorities volition measurement up acquisition to guarantee that investors person a amended knowing of the risks progressive successful crypto trading and the regulatory model governing crypto trading platforms.
Elizabeth Wong, caput of the SFC’s fintech unit, said the regulator was investigating whether JPEX had violated the anti-money laundering ordinance, and it had referred the lawsuit to the police. The study triggered an probe by the Commercial Crime Bureau.
The SFC subsequently issued a informing to investors to workout caution erstwhile dealing with JPEX, emphasizing that the speech had not submitted immoderate licence applications. The regulator further alleged that JPEX was making mendacious claims astir having obtained authorizations from overseas regulators.
Moreover, the fiscal regulator emphasized that the trading level had promoted products with returns connected savings that were “too bully to beryllium true” and galore investors relied connected misleading statements from societal media influencers who were paid promoters.
According to the Associated Press, the constabulary said Tuesday that they person frozen slope accounts worthy 15 cardinal Hong Kong dollars ($1.9 million) and seized 3 properties valued astatine 44 cardinal Hong Kong dollars ($5.6 million) related to the exchange. They besides revealed that they had received 1,641 complaints astir JPEX involving $1.2 cardinal Hong Kong dollars ($153 million.)
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