JPEX Exchange Suspends Trading Amid Hong Kong Police Investigation
Date: 2023-09-18 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
Unraveling the Investigation
The Hong Kong police have launched an investigation into JPEX following a directive from the Securities and Futures Commission (SFC), the market regulator. SFC alleges that the firm operated in the city without a license, marking the first such warning from the regulatory body since Hong Kong intensified efforts to establish itself as a cryptocurrency hub, attracting more individual investors.
JPEX Exchange Halts Trading
JPEX Exchange has announced that market makers have frozen assets in response to the investigations by Hong Kong authorities. Additionally, Joseph Chok, connected to the JPEX investigation, has been arrested by the Hong Kong police, and officers were seen transferring boxes to a separate vehicle.
Numerous Complaints
The Hong Kong police have received 83 complaints against JPEX, totaling HKD 34 million (USD 4.3 million), according to Police Commissioner Raymond Siu, as of Saturday.
Suspected Wrongdoings
The Securities and Futures Commission previously accused the platform of exhibiting "suspicious functions" and warned that it may be associated with fraudulent activities.
A Collaborative Approach
Commissioner of Police Raymond Siu stated that officers are investigating the case, and a hotline (28605012) has been set up for the public to report or receive additional information. Siu emphasized that the number of technological crimes is on the rise, and various stakeholders, including law enforcement, experts, and firms, must work together.
Restructuring as a DAO
Meanwhile, representatives from the exchange have indicated that they are exploring the possibility of restructuring into a decentralized autonomous organization (DAO).
Compliance and Registration
On its website, JPEX reports that the company is licensed by the Australian securities authorities and registered with the U.S. Financial Crimes Enforcement Network (FinCEN) as a money services business (MSB).
Abandoned Conference Presence
Visitors to JPEX's booth during the recent Token2049 conference in Singapore reportedly found it abandoned after the first day.
