According to SCMP (South China Morning Post), Hong Kong police have received 83 complaints regarding the platform’s operations, which were conducted without a proper license.
In connection with an investigation into the unlicensed crypto exchange JPEX, authorities in Hong Kong have arrested six individuals, including two social media influencers, as reported by the South China Morning Post.
JPEX, based in Hong Kong, has been operating without the necessary license, according to the Securities and Futures Commission, Hong Kong’s market regulator. The police have received a substantial 1,408 complaints regarding the platform, with a total amount involved in these complaints reaching $128 million, as per local media reports.
JPEX issued a statement citing liquidity challenges and unfair treatment by relevant institutions in Hong Kong, which led to frozen funds and increased operating costs. As a result, the exchange decided to delist all transactions on its Earn Trading interface and is contemplating restructuring as a Decentralized Autonomous Organization (DAO).
Despite these challenges, JPEX expressed its commitment to continue operating and criticized the Securities and Futures Commission for its actions, alleging unfair practices that disrupt market order and contradict the government’s Web 3.0 development direction.
JPEX has been listed on the Securities and Futures Commission’s investor alert since July 2022. Reports from Taiwan indicate that JPEX’s Taipei office was recently vacated, and authorities have questioned Taiwanese influencers associated with the exchange.
On its website, JPEX claims to be licensed by Australian securities authorities and registered with the U.S. Financial Crimes Enforcement Network (FinCEN) as a Money Services Business (MSB).
During the past 24 hours, JPEX’s thinly traded exchange token, JPC, has experienced a 21% decrease in value. Additionally, reports suggest that attendees at the Token2049 conference in Singapore found JPEX’s booth abandoned after the first day.