- Hong Kong police apprehend influencer for endorsing unauthorized cryptocurrency exchange, JPEX.
- The Securities and Futures Commission has not licensed JPEX Group.
- JPEX allegedly used influencers to disseminate deceptive information for promotion.
An influencer has been apprehended by the Hong Kong police on allegations of endorsing an unauthorized cryptocurrency exchange and trading JPEX. The police have stated that they have received over 83 complaints against JPEX, with a projected loss of around HK$34 million.
Joseph Lam Chok, a prominent social media influencer and insurance manager, was taken into custody following his promotion of JPEX. He is accused of urging investors to establish JPEX accounts and convert their funds into cryptocurrency. Despite asserting his partnership with JPEX, Lam Chok possessed no company shares.
Reports indicate that law enforcement officials searched Chok’s office, from which two officers led him out. Following the office search, the officials confiscated multiple boxes of what they referred to as “evidence”, which comprised a substantial quantity of banknotes.
The Securities and Futures Commission (SFC) has recently communicated that it has observed JPEX’s active promotion of its services and products to the public in Hong Kong. The SFC further noted that the cryptocurrency exchange employs internet influencers and “over-the-counter” exchange outlets in its marketing strategies.
The Securities and Futures Commission (SFC) has stated that they have not granted JPEX Group and its associated entities a license. Furthermore, the cryptocurrency exchange has yet to apply for a license to run a digital asset trading platform in Hong Kong.
The law enforcement authorities have confirmed receiving a tip-off from the China Securities Regulatory Commission regarding potential fraudulent activities associated with the cryptocurrency exchange. The police established a hotline and disclosed that they had received more than 83 complaints from the general public.
The commission has reported that the trading platform purported to have acquired licenses from foreign regulatory bodies and promised substantial returns on savings products. Regulatory authorities have cautioned the public about JPEX, emphasizing the incorrect and deceptive data the firm disseminated on its website.
Additionally, the announcement indicated that JPEX utilized social media influencers for its promotion, who frequently disseminated deceptive information, often as compensated endorsers.
