Investors reported losses of$ 1.3 billion($ 166 million,£ 134 million ) to the Hong Kong police, who are now looking into allegations of fraud against the cryptocurrency trading platform JPEX.
This year, eleven people, including well-known bloggers, were detained in response to complaints from 2, 000 people.
According to local media, the situation may be one of the biggest scam scenarios in the Hong Kong.
As the Hong Kong positions itself as a world center for virtual goods, it also puts new financial requirements to the test.
The Dubai-based JPEX had been operating without a virtual asset trading license, according to the Hong Kong’s Securities and Futures Commission( SFC ) last week.
The program, on the other hand, claimed that it had” strived to comply” with the native requirement that went into effect in June of this year, but the Commission” dismissed or sidestepped” its work.
According to police, many of the plaintiffs are inexperienced buyers who were promised higher yields. In addition to tapping bloggers, JPEX used massive banners to advertise extensively on the Hong Kong’s MTR teach system.
Authorities were seen escorting Joseph Lam, one of the arrested bloggers, onto a car after his home was raided, according to footage that was broadcast locally on TV. Mr. Lam, a former insurance salesman and barrister, is referred to as the Hong Kong’s” Trolling King” on Instagram.
Mr. Lam demonstrated to his followers in his content how Bitcoin profits may enable them to purchase a home and increase their social standing.
Chan Yee, a 200,000 subscriber YouTube temperament, was also detained.
Since the detention, some JPEX buying has been suspended in the Hong Kong, and it appears that the state’s officials have blocked access to the website.
In response to some users’ complaints that they are unable to withdraw their money, the system has also stated that it is working to address a” liquid shortage.”
He told investigators,” This event highlights the significance that when buyers want to invest in digital assets, they must spend on platforms that are licensed.”
In order for the consumer to better understand dangers and how platforms are regulated, Mr. Lee promised that his government would increase investor education.
Due to the lack of rules and monitoring by central bankers, there have long been worries about cryptocurrencies. Despite this, buyers have been drawn to peer-to-peer digital currencies because of their allure.
According to Francis Fong, honorary chairman of the the Hong Kong Information Technology Federation, programs like JPEX require licenses in order to guarantee transparency and reimbursement when necessary.
It implies that little negative may occur if there is control. he remarked.
Yet, some experts in the digital economy have informed the BBC that current laws might not be sufficient to stop the illegal operation of digital asset platforms and to shield investors from losses.
Shareholders in distress have created Facebook groups called” JPEX Sufferers.”
One team part claimed that the prevalence of JPEX’s MTR advertisements lured him to the company. Fung Hei-kin, an online critic, wrote 3,700 likes and 400 reposts criticizing the train operator.
JPEX, which has its headquarters in Dubai, United Arab Emirates, is authorized to promote the business of online resources in the US, Canada, and Australia, according to its website. Its website’s About Us area displays hazy images of what appear to be the three countries’ certificates.
JPEX, which was established in 2020, claimed to have$ 2 billion in assets and to be one of the top five virtual asset markets in the world.
JPEX’s the Hong Kong target was checked by the South China Morning Post, which revealed that Coffee, a co-working company, was residing there.
According to the issue, the shop’s employees were aware of JPEX and had earlier checked the address with the Hong Kong police.
According to local press, JPEX also has an office in Taiwan. A new test, however, revealed that it was empty. It once sponsored a boxing fit on the island and used well-known Chinese superstar Nine Chen as its influence.
After the Hong Kong authorities claimed that JPEX was operating without a license, Mr. Chen posted on Instagram last year.
I was trying to understand the scenario after hearing about the JPEX event, but I can’t seem to get in touch with the right people there right now, he said.
” The business is taking care of additional information. I will completely assist if the appropriate products need to look into it, he said.
