- Hong Kong police have arrested an internet celebrity for allegedly promoting the unlicensed crypto exchange JPEX.
- Authorities have received over 83 reports against JPEX, with an estimated loss of HK$34 million.
- The Securities and Futures Commission (SFC) highlighted that JPEX was actively promoting its services without the necessary licenses.
Hong Kong police have arrested an influencer on suspicion of promoting an unlicensed crypto exchange and trading JPEX. The police added that till now they have received more than 83 reports against JPEX, with an estimated loss of HK$34 million.
Joseph Lam Chok, an active social media influencer and insurance manager, was arrested after promoting JPEX. He allegedly encouraged investors to open JPEX accounts and exchange their money for crypto. The influencer claimed that he was a JPEX partner but didn’t hold any shares in the company.
According to reports, officers searched Chok’s office, where he was escorted out of the building with two officers. After searching his office, the officers seized several boxes of “evidence,” including a large stock of banknotes.
The Securities and Futures Commission (SFC) recently shared in a statement that it has noticed that JPEX actively promotes the platform’s services and products to the Hong Kong public. The SFC added that the crypto exchange uses internet celebrities and “over-the-counter” exchange shops.
The SFC said they didn’t license JPEX Group and its entities, and the crypto exchange hasn’t applied for a license to operate a virtual digital asset trading platform in Hong Kong.
The police stated that they had received a referral from the China Securities Regulatory Commission for suspicion of fraud related to the crypto exchange. The police set up a hotline and shared that they received more than 83 reports from the public.
According to the commission, the trading platform claimed it had obtained licenses from overseas regulators and offered high returns on savings products. Regulators warned the public against JPEX, highlighting the false and misleading information the company shared on its website.
Furthermore, the statement said that JPEX relied on social media influencers to promote it by sharing misleading statements, while the influencers were often paid promoters.