Hong Kong police arrested a social media influencer, Lam Chok, on Monday amid an ongoing investigation over the unlicensed crypto exchange JPEX.
According to a local news outlet, Lam Chok was arrested in connection with suspected fraud involving the JPEX exchange. Police officers have also seized evidence regarding the matter and a substantial amount of cash from the influencer.
Lam allegedly encouraged users to open accounts on the JPEX exchange and buy crypto assets from the platform. While arresting him, investigators also found a large stack of banknotes from the former lawyer turned influencer.
The Hong Kong police have reportedly received 83 reports against the JPEX, with several seeking help as they lost nearly HK$100 million on the exchange.
The Securities and Futures Commission of Hong Kong said that JPEX did not apply for a license to operate while it claimed to be a licensed and recognized digital asset trading platform.
As JPEX faced liquidity crisis after coming into the legal spotlight and its liquidity partners freezing funds, the exchange suspended trading activity, stating that it was facing difficulties in running and operating the platform.
Also read: Hong Kong Alert Public Crypto Firms Missusing The Word “Bank”
