A Hong Kong Based crypto exchange, JPEX is under scrutiny for allegedly scamming more than 2,300 individuals, resulting in losses around $200 million, according to the South China Morning Post.
Those involved in the scam are being chased by Hong Kong’s Security Secretary, Chris Tang Ping-keung. Thus far, twelve individuals have been arrested, and property and digital currency amounting to $9.8 million have been seized, along with $1 million in cash.
It seems JPEX had also found itself in hot water when it began offering a cryptocurrency platform without the proper authorization and allegedly misled its clients, which led to substantial financial losses. Working along with regulators, the police strive to avoid future scams.
Scores of individuals have complained to the authorities, and the combined loss amounts to around USD$178 million. The twelve arrested people include two YouTubers who recommended the site and three of its own employees.
But problems arose when users of JPEX failed to make withdrawals of their funds, and the exchange decided to raise the costs of the process. This action came after regulators issued alerts against trading there, sparking even greater anxiety about the platform’s activities.