JPEX crypto exchange busts in $166M scam 

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Reportedly 11 executives of JPEX crypto exchange detained by the Hong Kong police. 

JPEX was a global crypto exchange that was officially launched in May 2019 for customers belonging to the Asia Pacific market, with a team of staff from Japan, the US, and China. Before this bad phase, JPEX was promoting services in Hong Kong with full of aggression and also giving free vouchers to every new customer.

On 21 Sep 2023, Hong Kong’s local news media platforms reported that 11 people linked with the JPEX exchange had been arrested by the local police under fraud charges & for running an unregistered crypto exchange. 

As per report, the exchange’s executives embezzled the customers’ funds and nearly 2,000 people have been affected. Currently, $1.3 billion Hong Kong dollars ($166 million) worth of crypto assets are frozen on the exchange belonging to the affected customers. 

A Hong Kong based crypto influencer was also arrested by police over his direct link with this troubled exchange. Allegedly this influencer helped the exchange to collect huge numbers of customers from Hong Kong’s crypto market and also the influencer claimed that the JPEX exchange faced a liquidity crisis because of the Hong Kong regulator’s bad regulatory approach.

Just a few days ago, JPEX announced that it would handle the case easily and bring the services back to normal and also brought confidence among the customers through the promise of holding reserved funds. 

To stop the customers from withdrawing a high amount of funds, JPEX increased withdrawal fees by $999, as many people reported across different social media platforms. By addressing this issue, JPEX confirmed that it will fix the high withdrawal fees issue but what happened at the end, we know very well. 

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