Crypto Platform JPEX Halts Trading Amid Probe in Hong Kong

The Securities and Futures Commission (SFC) in Hong Kong has raised grave concerns about crypto platform JPEX, which has been actively marketing its services through influencers and over-the-counter virtual asset money changers. However, none of the entities within JPEX hold a license to operate a virtual asset trading platform in Hong Kong, prompting an investigation. 

In response, JPEX announced the suspension of some trading activities, impacting users' ability to place new orders on its Earn Trading interface, reportedly. Interestingly, the platform is working to address liquidity issues with third-party market makers. The Hong Kong police are conducting an investigation based on the SFC’s referral, citing JPEX’s operation as an unlicensed entity.

So far, the police have received 83 complaints involving HK$34 million ($4.3 million) related to JPEX. Not only that, the platform, headquartered in Dubai, has also faced additional controversy over increased withdrawal fees and unaccounted staff at its Singapore booth. The outcome of the investigation remains uncertain.

Shortly before, reports came out that Hong Kong's social media celebrity Lam Zuo has been arrested for promoting the controversial cryptocurrency exchange, JPEX, amid an ongoing investigation. As reported by local media, this arrest has a direct link to the fraudulent activity connected to the exchange. 

(Source: Coinpedia Fintech News)