Over 1,600 Investors Lost HK$1.2 Billion in JPEX Crypto Exchange Scamby Fintech News Hong Kong September 20, 2023
More than 1,600 investors have fallen victim to crypto exchange JPEX‘s scam in Hong Kong, with losses totaling HK$1.2 billion (US$154 million), according to the South China Morning Post. One investor suffered a loss of HK$40 million (US$5.1 million), the largest in the scandal.
The police have arrested eight people in connection with the investigation while bank accounts with HK$15 million (US$1.9 million) have been frozen, and three properties valued at HK$44 million (US$5.6 million) have been seized.
JPEX had previously accused the Hong Kong Securities and Futures Commission (SFC) of “continuous unfair treatment” by sending letters to all of its partners, requesting them to cease cooperating with the platform.
The crypto exchange shifted the blame to the SFC for refusing to give it guidance even though JPEX had only reached out to the regulator just two days after a warning was issued about its questionable practices.
The SFC found that JPEX offered suspiciously high returns for some of its products as well as made false or misleading statements about its business and its relationships with other companies.
The regulator had also received complaints from investors who have been unable to withdraw their funds from JPEX.