The situation for JPEX exchange is getting worse after Hong Kong regulators investigated the platform for operating as an unregistered entity.Â
Hong Kong police have received more than 1600 complaints over the alleged fraud by JPX exchange. The complaints from users claim that they are unable to withdraw their assets from the exchange.
According to the press-briefing, Hong Kong Police estimates that the exchange has nearly HK$1.19 billion, or approximately $152 million, worth of customer funds as per the complaints.Â
Police have raided 20 locations in the city and arrested eight suspects of fraud, including a JPEX associated social media influencer Joseph Lam Chok. The authority has also seized several million HK dollars in cash, jewelry, computer devices, and evidence relating to the JPEX exchange.
The authority has also frozen HK$15 million from suspected individuals’ bank accounts and properties worth HK$44 million. Hong Kong police is also looking to freeze over HK$60 million in alleged criminal proceeds.Â
The investigation into JPEX started because it lied about being a licensed operator. The exchange suspected its trading and other activity after facing a sudden liquidity crisis on September 17 as its market makers moved apart due to regulatory issues.Â
