A cryptocurrency exchange in Hong Kong, JPEX, which is under scrutiny by both the police and financial regulators for suspected fraud, has declared its intention to halt trading activities starting on Monday.
The exchange explained that the negative news and suspicions surrounding their business have caused the companies that help facilitate trades on their platform to hold onto their money and stop the flow of cash to the exchange.
The police have disclosed that they’ve received 83 complaints related to this exchange, involving virtual assets valued at around HK$34 million, or approximately $4.3 million.
Raymond Siu Chak-yee, Police Commissioner, said on Saturday that the Securities and Futures Commission had previously raised concerns about potential fraud with the police, which is why the Commercial Crime Bureau is now conducting an investigation.
“I appeal to people who have related questions about the case or want to report a crime to contact us through the hotline or the electronic report form,” Siu said.
On Wednesday, the commission gave a caution to people who might want to invest money, saying that JPEX hadn’t asked for the necessary licenses. They also warned the public to be careful about any investment offers that sound too good to be true.
The commission also mentioned that JPEX had lied about getting licenses from regulators in other countries and was promising very high returns on savings investments, which might not be trustworthy.
In a Telegram group, a user shared a screenshot of JPEX that displayed a request to take out 1,000 Tether tokens (USDT) on a Saturday afternoon. However, they only received 25 tokens, and the remaining 975 tokens were kept as a “processing fee.”
The administrator of the group said, “But I believe it’s only the tip of the iceberg because, according to blockchain transaction records, JPEX has more than 30,000 users involving more than US$300 million.”
Also Read: JPEX Faces Liquidity Crisis As Market Makers Freeze Funds
