Abstract：Hong Kong crypto influencer Joseph Lam arrested over ties with JPEX exchange amid liquidity crisis investigations. JPEX suspends trades, faces regulatory scrutiny.
Hong Kong - In recent events, Hong Kong police arrested Joseph Lam, a prominent crypto influencer known as ‘jolamchok’ on Instagram, due to his ties with the cryptocurrency exchange JPEX. This arrest follows an investigation into JPEX's liquidity issues, where Lam's involvement was suspected.
The Hong Kong authorities reportedly seized evidence from Lams office during a raid. Among the items taken was a bag filled with banknotes.
The Hong Kong regulatory body, the Securities and Futures Commission, has pointed fingers at JPEX for using online celebrities to aggressively promote their services. There are rumors that Lam had introduced “schemes” in a chat group dedicated to cryptocurrency investments. One of the alleged victims, named Miss Chen, is said to have invested 100,000 Hong Kong dollars (around $12,800) in crypto.
A day before visiting the police, Lam shared a news article on social media, suggesting he wasn‘t involved in the JPEX scandal. He captioned it, “Whatever doesn’t kill you makes you stronger.”
JPEX, amidst all these accusations, has blamed regulators and external market makers for their liquidity problems. They've increased withdrawal fees and even paused some operations. However, they assured their users of plans to resolve these issues in the near future.
Additionally, JPEX has suspended all new trades starting this week, following a warning from the SFC and multiple complaints from consumers. The exchange has defended its actions, attributing them to unfair media coverage causing liquidity providers to withhold their capital. JPEX is currently under scrutiny for claiming false international registrations, and its promotion strategies that involve online influencers have also been called into question.
The Securities and Futures Commission of Hong Kong has emphasized that JPEX is not registered, and its operation could potentially be fraudulent. It's important for potential investors to be wary of platforms promising unrealistically high returns, especially those heavily promoted on social media.
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