Hong Kong’s Securities and Futures Commission (SFC) has warned investors against using the unregulated cryptocurrency exchange JPEX.

The statement stressed that no entity in the JPEX group is licensed by the SFC or has applied for a license to operate a virtual asset trading platform (VATP) in Hong Kong.

The SFC found that JPEX has been actively promoting its products and services to the public through social media influencers and key opinion leaders as well as over-the-counter virtual asset money changers (OTC Shops).

The regulator has notified these influencers and OTC Shops and requested them to cease promoting JPEX and its related services and products.

Among other red flags are the high returns that JPEX offers for some of its products as well as making false or misleading statements about its business and its relationships with other companies.

The SFC has also received complaints from investors who have been unable to withdraw their funds from JPEX.

“The SFC will not hesitate to take enforcement action against individuals and entities who fail to abide by the VATP regime administered by the SFC, including those who are involved in such violations.”