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Cryptocurrency blogger goes to jail for advertising cryptocurrency exchange
Hong Kong’s JPEX cryptocurrency exchange has suspended trading after an inspection by the Hong Kong Securities and Futures Commission (SFC). As a result, a well-known local blogger was arrested, the media reported.
According to the South China Morning Post, the police arrested influencer Joseph Lam Chok, who had been promoting the exchange, and confiscated equipment from his office. Law enforcement is currently questioning other celebrities who promoted the exchange. Police received 83 complaints against JPEX totaling HK$ 34 million ($ 4.3 million).
On September 14, the Hong Kong Securities and Futures Commission warned JPEX users about the threat of losing money, accusing the platform of «dubious offers» for users and spreading false information about the company’s license. JPEX representatives said that starting from September 18, the exchange will suspend trading under the Earn Trading program and adjust the withdrawal fee. JPEX is in talks with third-party market makers to address the lack of liquidity, the platform said in a statement.
JPEX’s website reports that the platform is licensed by the Australian Securities Commission and registered with the US Financial Crimes Enforcement Network (FinCEN) as a money services business (MSB). In August, Hong Kong’s regulator warned that «improper practices» of crypto exchanges could be criminalized. The SFC found cases where platforms provided services without the necessary license or reported false information about obtaining it.
It is worth reminding that JPEX raised the cryptocurrency withdrawal fee for users by 99% a few days ago. The exchange’s clients complained about the absurdly high fee for withdrawing digital assets: JPEX allows withdrawals of up to $ 1,000 and charges $ 999 for the transaction. In addition, the firm advertises its JPEX tokens (JPC) in Hong Kong taxis, promising that their rate will increase 50 times to $ 1, and offers to open a stablecoin savings account with a whopping Z0% annualized yield.