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Following several complaints, the Hong Kong police are investigating the JPEX cryptocurrency exchange, which involves approximately 34 million Hong Kong Dollars (worth 4.3 million USD) in crypto assets. This development came after the Securities and Futures Commission (SFC) of Hong Kong issued a warning against JPEX for conducting unregulated operations. Meanwhile, about 83 users have filed complaints against the exchange due to their inability to withdraw their funds.
Exchange Comes Under Scrutiny
On Wednesday, the Hong Kong SFC issued a recommendation for investors in the cryptocurrency sphere. In the application, it stated that JPEX had not applied for any licenses and cautioned the public to think twice when encountering offers that seem too good to be true.
The SFC also pointed out that JPEX made false claims about obtaining licenses from overseas countries and regulators. It revealed that the exchange created high-return expectations in investment and savings systems. Additionally, the exchange often relied on paid social media content creators who disseminated misleading information to the public.
Following the SFC’s warning, some JPEX users reported difficulties in withdrawing their cryptocurrencies from their online exchange accounts. One user stated that when they attempted to withdraw 1,000 USDT, they only received 25 USDT, with the rest being deducted as transaction fees.
Furthermore, the group managing the Telegram channel for JPEX complaints stated that they had received approximately 200 complaints involving over 10 million USD worth of cryptocurrencies. However, the group noted that blockchain transaction records indicated JPEX had over 30,000 users, potentially holding over 300 million USD on the exchange.
The Current State of the Crypto Exchange
JPEX entered the Hong Kong market two years ago and conducted aggressive promotional campaigns, including advertisements in major metro stations. The exchange also expanded its operations to Taiwan earlier this year and enlisted showman Nine Chen as its brand ambassador.
However, Chen informed officials that his contract with JPEX ended at the end of July. The identities and whereabouts of JPEX’s owners remain uncertain due to the company’s opaque corporate structure. As investigations continue, the Hong Kong police have urged those affected by the incident to come forward and report their experiences to the authorities.
