2023-09-27 14:41:40
Hong Kong Security Secretary Chris Tang Ping-Keung has pledged to step up efforts to arrest the mastermind behind the controversial JPEX cryptocurrency exchange. The crackdown follows a series of enforcement actions once morest JPEX, including a police directive instructing telcos to block access to the website and mobile app.
The JPEX scandal began when the Securities and Futures Commission (SFC) received more than 1,400 complaints once morest the exchange for fraud, freezing withdrawals, and decreasing wallet balances. The SFC noted that JPEX promoted its services and products to the Hong Kong public through online celebrities.
As the problems with JPEX became public, many users found themselves unable to withdraw their funds, while others complained regarding the reduction in their wallet balances. In response to the Hong Kong watchdog’s warning, JPEX reportedly increased its withdrawal fee to $1,000 to discourage users from withdrawing their assets.
Hong Kong police have since arrested influencer Joseph Lam (Lin Zuo) for his association with JPEX. So far, 2,392 victims have filed complaints regarding the JPEX exchange with the police, leading to the arrest of 12 people and the seizure of assets worth HK$77 million and more than HK$8 million in cash.
Hong Kong Ready to Tighten Cryptocurrency Regulations
The Secretary of Security he claimed that the police “by all means will hold the guilty accountable for their crimes,” and noted that they were actively involving relevant people related to the case of alleged conspiracy to defraud.
In light of these events, Hong Kong regulators seek to tighten regulations around the crypto market. The government plans to increase its efforts to inform investors and remind them to only use platforms that have been granted licenses by the Securities and Futures Commission.
Currently, the regulatory authority is taking initiatives to inform people regarding the importance of conducting their cryptocurrency transactions only on platforms that are licensed.
Unfortunately, cases like JPEX or FTX are the main culprits of the recent witch hunt that regulators around the world are doing once morest cryptocurrencies and financial freedom.
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