Odaily News The Hong Kong Securities and Futures Commission issued an announcement, noting that a virtual asset trading platform called JPEX actively promotes the platforms services and products to the Hong Kong public through social media influencers and over-the-counter virtual asset currency exchangers. The SFC clarified that none of the entities under the JPEX Group have been licensed by the SFC, and have not applied for a license from the SFC to operate a virtual asset trading platform in Hong Kong. (Mijing.com)

Odaily News The Hong Kong Securities and Futures Commission (SFC) announced yesterday that the virtual asset trading platform JPEX is an unlicensed operation. Later, it was reported on the Internet that the JPEX exchange could not withdraw funds within 8 hours. Some users pointed out that JPEX had limited the withdrawal limit to a maximum of 1,000 USDT and changed the withdrawal fee to 999 USDT, which means that retail investors can only withdraw a maximum of 1 USD. The Securities and Futures Commission of Hong Kong said it would refer the matter to the police for follow-up. (Ming Pao)

Odaily News JPEX today issued a response and special announcement to the Hong Kong Securities Regulatory Commission’s statement, stating that it has adjusted the USDT withdrawal fee, set up a task force to adjust the future development direction, and awaits further guidance from the Securities Regulatory Commission. Although the announcement stated that if users have urgent currency withdrawal needs, they can arrange to withdraw coins as soon as possible by filling in the form. However, community users reported that after filling in the form, they were asked to submit documents such as identity documents and income certificates. Community staff recommended not to submit documents such as proof of identity and income to JPEX. Submitted information may be used for illegal purposes. According to previous news, the Hong Kong Securities and Futures Commission (SFC) announced yesterday that the virtual asset trading platform JPEX is an unlicensed operation. Later, it was reported on the Internet that the JPEX exchange could not withdraw funds within 8 hours. Some users pointed out that JPEX had limited the withdrawal limit to a maximum of 1,000 USDT and changed the withdrawal fee to 999 USDT, which means that retail investors can only withdraw a maximum of 1 USD. The Securities and Futures Commission of Hong Kong said it would refer the matter to the police for follow-up.

Odaily News Bitrace issued an article on the The two addresses with the most transfers to one of its hot wallets are both high-risk addresses. The first address transferred 969 transactions, totaling 1,092,244 USDT. Bitrace marked the risk type as money laundering; the second address transferred 897 Pen, a total of 387,692 USDT, Bitrace marked the risk type as black and gray production.

Odaily News Regarding the report that Julian Cheung had endorsed JPEX, Julian Cheungs agent responded that he only noticed that Julian Cheungs portrait was being used by JPEX and felt helpless. Julian Cheung had previously received an invitation to shoot an advertisement. At that time, JPEX told them that it was registered overseas. They provided proof, so they arranged to shoot in March last year. However, in May last year they learned that JPEX was under supervision of the Securities and Futures Commission and informed JPEX in writing that they were not allowed to use Zhangs portrait for any advertising before obtaining a license in Hong Kong. They stated that they would reserve the right to pursue JPEX. Since the Securities and Futures Commission issued a warning the day before yesterday, reporters have observed that many Internet celebrities who have promoted JPEX, including Coin Master Huang Chengjie who was arrested for throwing money in Sham Shui Po in 2018, have removed JPEX-related videos from social platforms. , and stated on Instagram that in order to comply with regulations and the requirements of the Securities and Futures Commission, it will not publicly promote or mention any exchanges that have not applied for a license in Hong Kong. (Ming Pao)

Odaily News According to Ming Pao, the Commissioner of Police of the Hong Kong Special Administrative Region Siu Chak-yi met with the media this morning (16th) after attending the graduation ceremony of the Hong Kong Police College to comment on the recent fraud involving the virtual asset trading platform Greenstone Digital Asset Platform (JPEX). In response to the Cyberport data breach case, he said that the police received a referral from the Securities and Futures Commission the day before yesterday. Because it may involve elements of fraud, the Commercial and Crime Investigation Bureau is now following up. As of 3 pm yesterday, 83 people have been received. The case was reported, involving approximately HK$34 million, and a hotline 28605012 has been set up for public inquiries. As for the Cyberport leak case, Xiao Zeyi said that he received a report from Cyberport in August and has actively maintained communication with Cyberport in the past month. The relevant cases are still under investigation.

Odaily News JPEX issued an announcement stating that it has closed the game lobby function in accordance with the instructions of the Hong Kong Securities Regulatory Commission. The closing time will be 00:00 on September 16, 2023 (GMT+8).

Odaily News JPEX has been widely publicized and attracted a large number of investors, but the China Securities Regulatory Commission did not intervene early and was questioned as one of the reasons for the geometric increase in the number of victims. However, Hong Kong Legislative Council member of the financial sector Chan Chun-ying said that the Securities and Futures Commission has been monitoring the problem of unlicensed operations, but the Securities and Futures Commission must collect evidence to prove that the platform has business operations before it can intervene. Since the platform is unlicensed, it is not under the supervision of the China Securities Regulatory Commission, and customers cannot receive compensation if it goes bankrupt. Therefore, the JPEX case can only be handed over to the police for investigation in the direction of fraud. Based on this experience, he understood that if the SFC discovers unlicensed trading platforms selling advertisements in the future, it will alert investors online, and investors should also check the SFCs list of licensed trading platforms before making investments. (Hong Kong Wen Wei Po)

Odaily News JPEX issued an announcement stating that due to third-party market makers restricting the liquidity of the platform and in compliance with policy guidelines, the platform will delist all transactions on the financial management page at 00:00 (GMT+8) on September 18, 2023. . At that time, users will not be able to place any new financial management orders, and existing financial management orders in progress will be maintained until the end of the product in order to receive benefits. JPEX stated that it will recover liquidity from third-party market makers as soon as possible and gradually adjust currency withdrawal fees to normal levels.

Odaily News Hong Kong police arrested JPEX promotion internet celebrity Lin Zuo today, which may be related to the crisis of the crypto exchange JPEX. The police searched Lin Zuo’s office in the Entertainment District in Central. The case is now being handed over to the Commercial Crime Bureau for follow-up. After JPEX was named by the Hong Kong Securities Regulatory Commission, new withdrawal restrictions were added. Investors could only withdraw a maximum of 1,000 USDT, and the handling fee was once as high as 999 USDT. After JPEX launched the measures, Lin Zuo once said that he had suffered heavy losses and said he would help follow up on the incident. (Yahoo News)

According to Odaily’s official announcement, JPEX stated that in order to operate stably in Hong Kong, the platform has been working on preparing to cooperate with the cryptocurrency regulatory system before the end of the grace period of the license system, and has cooperated with the Hong Kong Securities and Futures Commission ( SFC) maintain communication. However, the Hong Kong Securities Regulatory Commission did not fulfill its promise and continued to treat JPEX unfairly. It sent letters to all JPEX partners requesting to terminate their cooperation with JPEX. On September 13, 2023, the China Securities Regulatory Commission also issued a statement against JPEX, which resulted in the third-party market makers the platform cooperated with maliciously locking funds and experiencing operational difficulties. In addition, JPEX said that it once again requested guidance from the Political Supervision Commission on September 15, 2023, but only received a response that it had been handed over to the police. However, JPEX stated that it would unswervingly continue to operate.

Odaily reported that the police arrested Internet celebrity Lin Zuo this morning on suspicion of being related to the JPEX case of the virtual asset trading platform named by the China Securities Regulatory Commission. It is understood that another Internet celebrity Chen Yi was also arrested. They were suspected of conspiracy to commit fraud. The police searched Chen Yis CYOTC Chen Dayi cryptocurrency exchange shop in Wing On Plaza in East Tsim Sha Tsui. According to sources, the police originally also targeted another person in the entertainment industry, but because the person was not in Hong Kong, they were unable to arrest him. It is reported that the police have received reports from more than a thousand people regarding cases involving JPEX. Some legal consultants said that if the subject violates the law, there are two main factors to consider when evaluating whether the collaborator has violated the law, namely whether they participated and whether they were aware of the crime. It is believed that the police will have evidence or opinions in these two aspects to make the arrest. (Economic Journal)

Odaily News JPEX was named by the Hong Kong Securities and Futures Commission and was not licensed. The police said that they received relevant referrals from the Securities and Futures Commission on September 14. After investigation, four men and two women were arrested in each district today on suspicion of conspiracy to defraud. , is currently being detained for investigation. The police said that as of 2 p.m. today, a total of 1,408 people had received reports on related incidents, involving an amount of approximately NT$1 billion. (Ming Pao)

Odaily reported that Hong Kong financial market supervision and virtual assets lawyer Chen Tingqian said that at this stage, JPEX Hong Kong users will have certain difficulties if they consider civil claims. The current difficulty is that they do not know which legal entity of JPEX holds the customer assets. I don’t know where the legal entity is registered. Once JPEX collapses, refer to the past liquidation procedures of Gatecoin, an unlicensed real estate trading platform registered in Hong Kong. The process must orderly distribute the platform assets to creditors. The type of creditor of the user depends largely on the terms between the platform and the user. Since JPEX is not licensed in Hong Kong, if the terms do not clearly establish a trust relationship between the exchange and its users, user deposits held by the exchange are likely to be regarded as the assets of the exchange during the liquidation process, which means that the user is an unsecured creditor. , the priority of asset distribution in the event of liquidation is fifth after secured creditors, liquidation expenses, priority payments and floating chargees.

Odaily News According to Hong Kong 01 reports, since the beginning of this year, users from mainland China and Taiwan have reported that they cannot withdraw money, including Mr. Yu, a Shenzhen user who has used JPEX for more than a year. Mr. Yu said that he came to Hong Kong in July this year at the invitation of JPEX customer service staff, saying that he could withdraw about HK$1.56 million in virtual assets by signing in person. However, when he arrived in Sheung Shui and contacted the staff, he was rushed out by several people from a seven-passenger car. attack. The police said they were looking for four people, including an investment company leader and three men in black. They were still investigating the cause of the crime and called on JPEX owners to report the crime online. The reporter is checking with JPEX whether it is related to the beating incident.

Odaily News Hong Kong SAR Chief Executive Lee Ka-chiu said that in response to the case of the virtual asset trading platform JPEX, the police and the Securities and Futures Commission have been asked to meet with the media this afternoon (19th) to explain the relevant incidents. Li Jiachao pointed out that the SAR government’s policy stance on virtual assets is to have an effective regulatory system, the dissemination of information related to virtual assets must be open and transparent, and investor education must be valued and promoted. Li Jiachao said that this incident reflects the importance of supervision, including the need to invest in regulated and licensed trading platforms, and the importance of personal understanding of virtual assets and related risks. He emphasized that the current licensing system is to protect investors. The Securities and Futures Commission will monitor market changes to ensure that investors interests are fully protected, and the authorities will also vigorously promote investor education.

Odaily News: Hong Kong police stated that they have arrested 8 people in connection with the virtual asset trading platform JPEX case and will hold a case briefing at 4 pm today (19th). As of 2 pm yesterday (18th), a total of 1,408 people had reported the crime, involving more than 1 billion yuan. This morning, Chief Executive of the Hong Kong Special Administrative Region Lee Ka-chiu expressed concern about the JPEX case when meeting reporters in front of the trade union. He has asked the police and the Securities and Futures Commission to meet with the media this afternoon to explain the relevant incidents. (Astardaq Finance)

Odaily News: The Hong Kong police stated at a briefing on the JPEX case that as of 10 oclock last night, the police had received 1,641 reports claiming that they were unable to withdraw assets at JPEX and were suspected of being defrauded, involving approximately HK$1.2 billion. Hong Kong Commercial Crime Bureau Acting Chief Inspector Mak Wai-kwong said that 4 men and 4 women, aged between 22 and 52, have been arrested so far for conspiracy to defraud. He pointed out that 8 million yuan in cash was found during the operation, and more than 12 million yuan in bank deposits and 44 million yuan in properties have been frozen. The 67 million yuan in assets are suspicious criminal proceeds. Hong Kong Police Commercial Crime Investigation Bureau Senior Superintendent Kong Qingxun said that JPEX used advertising, social media, over-the-counter currency exchange shops, and KOL promotion to promote platform services, claiming low risk and high returns. However, many citizens who were defrauded in the case lacked virtual currency. Investment experience, describing the returns claimed by JPEX as “too good to be true”, and recommending users to convert other cryptocurrencies into JPC tokens issued by JPEX, which have little liquidity on other platforms, and some owners even Submit the private key of the encrypted asset to JPEX. (Hong Kong Economic Daily)

Odaily News At the briefing on the JPEX case, Huang Lexin, head of the financial technology group of the Hong Kong Securities and Futures Commission, said that due to the original regulatory framework, the Securities and Futures Commission did not have the authority to regulate virtual asset trading platforms. The agency had listed JPEX as unlicensed in July 2022. Companies and suspicious websites are alerted to the public. Since the new compulsory regulatory system came into effect in June this year, all platforms that have no intention of applying for a virtual asset trading platform license need to wind down their Hong Kong operations in an orderly manner. However, JPEX neither applied for a license nor ended it in an orderly manner. It did not name anyone on August 7. The public was reminded to be aware of the risks of unlicensed virtual asset trading platforms, but JPEX intensified its efforts, issuing a warning by name on September 13 and requiring KOLs and exchange shops to stop promoting JPEX. Huang Lexin said that if the list of virtual asset trading platforms that are applying is made public, this may lead to the mistaken belief that these platforms will be subject to supervision, and the arrangement of only publishing virtual asset trading platforms that have obtained licenses will be maintained. Huang Lexin refused to disclose how many virtual asset trading (VATP) platform license applications it has received so far, and over-the-counter exchange shops are not regulated by the China Securities Regulatory Commission under the current system. According to Senior Superintendent Kong Hing-hsun of the Commercial Crime Investigation Bureau of the Hong Kong Police, among those who have reported the case, the investor with the largest amount of money involved amounted to NT$40 million. She continued to point out that JPEX’s propaganda attracts users with the slogan “make money every day, nothing to lose”, and its luxurious lifestyle and RVs make the public believe that the investment is considerable. (Hong Kong Economic Daily)

Odaily News At the briefing on the JPEX case, Senior Superintendent Kong Qingxun of the Commercial Crime Investigation Bureau of the Hong Kong Police pointed out that the arrested persons were the persons in charge of the companies or over-the-counter exchange shops involved in the case. It is not ruled out that more people will be arrested, involving approximately 1.2 billion. Yuan is calculated based on the amount of money deposited by the reporter. When asked whether JPEX was still trading crypto assets and whether it had the ability to freeze its operations, Kong Qingxun only said that JPEX had removed the financial product page from the shelves on September 18. In addition, Kong Qingxun noticed JPEX’s tough response in the incident and said that it is investigating from all aspects and angles, and the people behind JPEX are one of the directions of the investigation. (Hong Kong Economic Daily)

Odaily News Acting Chief Inspector Mak Wai-kwong of the Commercial Crime Investigation Bureau of the Hong Kong Police said that the wealth investigation team has frozen 15 million Hong Kong dollars in bank accounts and 3 properties with a total value of 44 million Hong Kong dollars, and is considering transferring the batch of more than 60 million Hong Kong dollars. Property confiscation. As for the artists related to the JPEX case who have left Hong Kong for Malaysia, Superintendent Lee Muxian of the Commercial Crime Investigation Bureau said that the investigation is still ongoing, and corresponding actions will be taken based on the degree of participation of the relevant persons and their role in the case. If someone really commits a crime in Hong Kong, there will be Relevant persons will be extradited from overseas to Hong Kong when necessary. (Economic Journal)

Odaily News Hong Kong police previously arrested 8 people involved in the JPEX case and were released on bail pending investigation on the evening of September 19, but they must report to the police in mid-October. At about 9 p.m., Yumei, the girlfriend of one of the arrested KOL Lin Zuo, appeared at the Central District Police Station holding a briefcase. At nearly 10 p.m., Yumei left the front door of the police station and did not answer reporters questions. Some media captured Lin Zuo leaving at the back door of the police station at the same time. (Ming Pao) Previously, Hong Kong police arrested JPEX promotion internet celebrity Lin Zuo on September 18, which may be related to the crisis of the crypto exchange JPEX. The police searched Lin Zuo’s office in the Entertainment District in Central. The case is now being handed over to the Commercial Crime Bureau for follow-up. After JPEX was named by the Hong Kong Securities Regulatory Commission, new withdrawal restrictions were added. Investors could only withdraw a maximum of 1,000 USDT, and the handling fee was once as high as 999 USDT. After JPEX launched the measures, Lin Zuo once said that he had suffered heavy losses and said he would help follow up on the incident.

Odaily News According to Hong Kong Wen Wei Po, the Hong Kong SAR government police and the Securities and Futures Commission jointly held a press conference yesterday to announce the JPEX case. The police comprehensively analyzed the operation mode and promotion methods of the virtual asset trading platform JPEX, saying that there are five elements that constitute suspected fraud: 1. JPEX has not applied for or holds a Securities and Futures Commission license at all, but stated on its website that it is “a licensed company and is subject to A recognized digital asset and virtual currency platform, it also uses advertising, media, over-the-counter (OTC) shops and Internet celebrities to promote it to create popularity and attract investors. 2. Some Internet celebrities make false and misleading statements, and show off their wealth online to create the appearance of getting rich by buying coins to increase their persuasiveness. However, since the China Securities Regulatory Commission has issued warning letters to relevant parties and physical stores in advance, some It is believed that the person involved knew that JPEX’s methods were illegal, but still promoted them to customers. 3. After JPEX users register, they can exchange different cryptocurrencies on the platform, or transfer virtual assets to their JPEX account on foreign platforms for trading. However, the investigation found that JPEX also issued JPC virtual currency, but JPC is different from other mainstream cryptocurrencies: JPC cannot be traded on other platforms, nor can it be used for payment purposes. Some victims were persuaded to buy JPC and used it as a so-called pledge similar to a time deposit, and only received extremely high returns after the pledge expired. JPEX will also require customers to provide private keys for cryptocurrency for safekeeping, and JPEX basically uses this method to control users assets. 4. After being warned by the China Securities Regulatory Commission, JPEX arbitrarily set the upper limit for users to withdraw assets to US$1,000 and charged a handling fee of US$999, thus restricting the withdrawal of assets in disguise. 5. By the early morning of the 18th, all financial transaction services were removed from the JPEX website.

Odaily News The Hong Kong Securities and Futures Commission issued a statement on JPEX stating that JPEX claims to be a virtual asset trading platform and is not subject to regulation. Since March 2022, the Securities and Futures Commission has been paying close attention to the platform and has begun to investigate the alleged actions of the platform. Inquiries into false and misleading statements and unlicensed activities. Since JPEX has always adopted an uncooperative attitude and failed to make a substantive response to the CSRCs request, the CSRC subsequently included JPEX in the CSRCs list of unlicensed companies and suspicious websites in July 2022 (Note 2). The confidential communications disclosed by JPEX on its website formed part of the above-mentioned inquiries and investigations of JPEX by the SFC. The SFC confirmed that JPEX has never approached the SFC regarding a possible license application, and that none of the entities under the JPEX Group has been licensed by the SFC, nor has it applied to the SFC for a license to operate a virtual asset trading platform in Hong Kong. Therefore, there is no communication between the Securities Regulatory Commission and JPEX on matters related to licensing. The SFC subsequently obtained information that raised suspicions that the case involved fraud and therefore referred the matter to the police. As the investigation is ongoing, the SFC is unable to comment further. Notes: 1. JPEX’s move violates Section 378 of the Securities and Futures Ordinance and Section 76B of the Anti-Money Laundering Ordinance, which imposes a requirement on persons assisting the Securities and Futures Commission in conducting statutory inquiries or investigations to inform them duty to keep matters confidential. 2. Since then, and until the SFC issued another public statement mentioning JPEX by name on September 13, 2023, the SFC and the Investor and Financial Education Council have made at least nine times in total on their respective websites and social media Warnings are issued to investors on the platform and through television/radio about trading on unlicensed platforms and related misconduct.

Odaily reported that the virtual asset trading platform JPEX was involved in a suspected conspiracy to commit fraud. Some users said that users of Hong Kong telecommunications service providers 1010 and CSL were unable to use the JPEX mobile app. It is understood that all local telecommunications service providers in Hong Kong have received instructions from the police to block the app, which means that other telecommunications service providers may also have the opportunity to block the App later. Sources said that the relevant telecommunications service providers did not actively block the JPEX App because the Office of the Communications Authority (OFCA), the police and local telecommunications service providers have mechanisms to block scams and fake websites, and this time JPEX is a fraud. , so the telecommunications service provider followed the instructions and blocked it. JPEX stated earlier today that the platform has received reports from a large number of users in Hong Kong that users using Hong Kong telecommunications service providers 1010 and CSL cannot access the platform’s mobile application normally. If customers encounter the same situation, they can use the VPN network to log in to the mobile application or use the web version to operate, saying that everything on the platform is operating normally. (Economic Journal)

Odaily News JPEX issued an announcement stating that due to the serious impact of the Hong Kong Securities and Futures Commission (SFC) incident, the third-party market makers it cooperated with maliciously locked funds, resulting in an unprecedented temporary predicament. With reference to Bitfinexs past successful handling methods and With improvements, JPEX will launch a “DAO stakeholder dividend plan”. The platform will distribute 49% of the DAO stakeholder dividends to the outside world. Existing users can exchange the assets currently stored in the platform for DAO stakeholder dividends at a ratio of 1:1. Users can participate in the referendum on September 21, 2023 and vote to decide whether to implement the plan. JPEX will still maintain normal operations until the referendum is completed and the results are obtained.

Odaily News The JPEX official website previously reported that it was registered with the Australian Securities and Investments Commission (ASIC) as JP-EX Crypto Asset Platform Pty Ltd. However, Ming Pao discovered today that the company applied to ASIC for voluntary deregistration (Voluntary deregistration) on September 19, and the applicant was the company’s director Jieyi Chen. According to the ASIC website, if you want to apply for voluntary deregistration, you need to meet six conditions, including that all members of the company agree to the deregistration, the company has no business, the value of the company’s assets is less than AUD 1,000 (approximately HKD 5,073), and the company has paid relevant expenses, the company has no outstanding debt and is not involved in any legal proceedings. The applicant declares that it meets the above conditions on the application form for voluntary deregistration. (Ming Pao)

Odaily News According to reports from the Hong Kong police, the Hong Kong police reported updated information on the JPEX case. On Wednesday (20th), three more men were arrested on suspicion of conspiracy to commit fraud and are now being detained for investigation. A total of 11 people have been arrested in the case so far. As of 5 p.m. on September 20, 2023, the police had received reports from 2,086 victims, involving a total amount of approximately HK$1.3 billion. The police said that the investigation was still ongoing and they did not rule out the arrest of more people.

Odaily News According to Ming Pao, Hong Kong Democratic Alliance for the Betterment of Hong Kong Chairman Li Huiqiong, Election Committee member Chen Zhongni and accounting member Huang Junshuo jointly wrote to the Hong Kong Financial Affairs Committee, saying that the JPEX incident was serious and requested that the agenda be added to the October 9 meeting. The JPEX incident will also be attended by the Hong Kong Securities Regulatory Commission for further explanation.