Hong Kong authorities have arrested an internet celebrity for allegedly promoting the unlicensed cryptocurrency exchange known as JPEX. The arrest comes after more than 83 reports were filed against JPEX, resulting in an estimated loss of HK$34 million.
The Securities and Futures Commission (SFC) has raised concerns about JPEX’s active promotion of its services without the required licenses. The Hong Kong police have now taken action against an influencer in connection with these allegations.
Joseph Lam Chok, a prominent social media influencer and insurance manager, has been apprehended for his role in promoting JPEX. He is accused of encouraging investors to open accounts on the platform and exchange their money for cryptocurrencies. Notably, Chok claimed to be a partner of JPEX but did not possess any shares in the company.
Reports indicate that law enforcement officers searched Chok’s office, where he was escorted out of the building alongside two officers. During the search, they seized numerous boxes of potential evidence, including a substantial amount of banknotes.
The Securities and Futures Commission (SFC) recently issued a statement highlighting JPEX’s active promotion of its services and products to the Hong Kong public. The SFC further emphasized that JPEX utilized internet celebrities and “over-the-counter” exchange shops in its marketing efforts.
It is crucial to note that the SFC has not granted licenses to JPEX Group or its associated entities, and the crypto exchange has not applied for a license to operate a virtual digital asset trading platform in Hong Kong.
The police revealed that they received a referral from the China Securities Regulatory Commission, which raised suspicions of fraud related to the crypto exchange. In response, the police established a hotline and received more than 83 reports from concerned members of the public.
According to the commission, JPEX’s trading platform claimed to possess licenses from overseas regulators and offered substantial returns on savings products. Regulators have cautioned the public against JPEX, citing false and misleading information presented on the company’s website.
Additionally, the statement revealed that JPEX relied on social media influencers to promote its services through the dissemination of misleading statements. Often, these influencers were compensated for their promotional activities.
