Hong Kong influencer Joseph Lam has disassociated
himself from the crypto platform JPEX, denying any allegation in the unfolding investigation of the exchange. Lam held a press conference yesterday (Friday), revealing that he had not
only closed his own company but also terminated the rental contract for his
Lam’s abrupt severance of his connection with JPEX comes in the
wake of his arrest earlier this week, along with ten others, all linked to an
alleged conspiracy to defraud investors. The case in question involves a staggering HK$1.37
billion, making it the largest of its kind in the city.
JPEX Exchange Saga
Lam, who was released on bail without any formal
charges, worked as an insurance agent and a barrister, but it was his involvement in an over-the-counter (OTC) crypto
exchange store that brought him into the JPEX fold. In July, Lam took to
social media to announce his application for partnership with JPEX, confirming
his status as a partner to Ming Pao, a local news outlet that uncovered his
promotional activities for the crypto platform.
However, during his recent press conference, Lam did not disclose the extent of his involvement with JPEX, refusing
to provide any details beyond announcing his cessation of operations with the
platform and the closure of his company.
Lam, known for his substantial Instagram
following, was apprehended by authorities in Hong Kong on Monday. His arrest is
closely linked to the suspension of trading activities on JPEX. Regulators allege that JPEX had been operating in the country
without the necessary license, leading to a series of legal actions.
Hong Kong’s Social Media Sensation, Joseph Lam, Arrested in Daring HK$34 Million JPEX Crypto Scandal! pic.twitter.com/zSUlXRZRTM
— Crypto University (@TheCryptoU) September 18, 2023
In the aftermath of the arrests, Hong Kong police
have taken measures to freeze assets amounting to over HK$60 million that are
linked to the suspects. JPEX’s legal challenges escalated when the exchange
took drastic measures in response to a crackdown by authorities. In its latest
move, JPEX has filed for the deregistration of its Australian entity, JP-EX
Crypto Asset Platform PTY LTD (JPEX).
JPEX Faces Heightened Regulatory Scrutiny
The unraveling of JPEX’s troubles began with a
warning issued by Hong Kong’s Securities and Futures Commission (SFC). The SFC
revealed that JPEX falsely claimed to have applied for a license with the
regulator, casting doubts on the legitimacy of the exchange’s operations.
Furthermore, the SFC alleged that JPEX’s other license claims were also false,
sparking concerns among investors.
The unfolding saga
began when JPEX confirmed the suspension of all its trading activities, citing
a series of challenges it faced in the wake of negative news and perceived
unfair treatment by relevant institutions in Hong Kong. In a blog post, the exchange stated that „our partnered third-party
market makers have maliciously frozen funds” and that these market makers
were demanding more information for negotiation, thereby restricting the
exchange’s liquidity and significantly increasing its daily operating costs.
This article was written by Jared Kirui at www.financemagnates.com.