Former lawyer and crypto influencer Joseph Lam has been apprehended by the Hong Kong Police for allegedly associating with troubled cryptocurrency speech JPEX. A section media outlet reported, citing sources acquainted with the case, that the constabulary arrested Lam connected Monday, September 18.
JPEX And Influencers Falsely Promoted Unregistered Products
Joseph Lam’s apprehension comes amid a heated probe by Hong Kong authorities into the JPEX speech pursuing its liquidity crunch. According to reports, the constabulary raided his bureau and confiscated immoderate boxes containing grounds of Liam’s transportation to JPEX.
Meanwhile, connected Saturday, the influencer told his implicit 190,000 Instagram followers that helium visited the constabulary connected Friday. He said helium offered the constabulary accusation astir the crypto platform. Also, helium urged those affected by JPEX’s liquidity crunch to telephone a constabulary hotline acceptable up for reporting losses.
The ongoing constabulary probe into crypto speech followed a informing from Hong Kong’s Securities and Futures Commission (SFC). On September 13, the SFC said the speech illegally promoted its products and services to the nationalist utilizing societal media influencers.
Furthermore, the regulator alleged that JPEX and its influencers falsely presented the level arsenic a duly registered speech successful Hong Kong. In addition, the regulator warned investors to enactment cautious astir concern opportunities that look misleading oregon excessively appealing.
JPEX Halts Operations Citing Liquidity Challenges
JPEX has suspended trading activities connected its level pursuing the SFC’s investigation. In a September 17 blog, it announced plans to halt immoderate operations, citing liquidity issues with third-party marketplace makers.
Recently, owed to the unfair attraction by applicable institutions successful Hong Kong toward JPEX, […], and a bid of antagonistic news, our partnered third-party marketplace makers person maliciously frozen funds.
According to the exchange, the marketplace makers restricted its liquidity and importantly accrued operating costs, resulting successful operational challenges. Therefore, it accrued withdrawal fees with plans to readjust erstwhile things instrumentality to normal.
Furthermore, it disclosed plans to delist each transactions from its Earn Trading interface by Monday, September 18. As a result, users tin nary longer spot caller Earn orders. However, it volition let existing Earn orders to continue, but tin lone person rewards until the extremity date.
Meanwhile, connected Saturday, Hong Kong constabulary said it received implicit 83 complaints astir JPEX and assets worthy $4.3 million. Some users complained astir difficulties withdrawing funds, with ample sums held backmost connected JPEX arsenic processing fees.
According to the report, the constabulary commissioner, Raymond Siu Chak-yee, said the SFC filed a study implicit suspected fraud. He added that the Commercial Crime Bureau was investigating the matter, and the constabulary encouraged different victims to lodge their complaints.
Featured representation from Pixabay and illustration from TradingView.com