According to a local newspaper, Hong Kong police have arrested social media influencer Joseph Lam, known by the username jolamchok on Instagram, due to his connection with the cryptocurrency exchange JPEX. The report states that local police raided Lam’s office and seized several pieces of evidence, including a plastic bag containing cash.
Bunch of Influencers Promoted JPEX
According to another report, the Hong Kong Securities and Futures Commission recently accused JPEX of collaborating with numerous influencers to promote the platform’s services. The allegations suggest that the exchange was promoting its services to the Hong Kong public through private advertisements.
The report also mentioned a influencer named Lin Zuo who created a paid chat group for cryptocurrency trading. It was confirmed that Zuo convinced an undisclosed individual to invest 100,000 Hong Kong dollars (12,800 dollars) in cryptocurrencies, and there were many similar cases. The report also included the following statement:
“Lin Zuo claimed that people in the group continued to call him to ‘pay money.’ On September 17, he shared a news article claiming that he was not involved in the JPEX incident and sent a message saying ‘what doesn’t kill you makes you stronger.'”
What Happened on the JPEX Side?
The cryptocurrency exchange JPEX, mentioned in the allegations, blamed regulatory authorities and “third-party market makers” for the liquidity crisis that led to increased withdrawal fees and suspension of certain operations. In its statement, JPEX said:
“We promise to recover liquidity from third-party market makers as soon as possible and gradually return withdrawal fees to normal levels.”
According to a recent report published by the cryptocurrency exchange Bitfinex, capital outflows from the crypto sector reached $55 billion in August. This capital outflow affected many altcoins and stablecoin liquidity, including Bitcoin.
