Hong Kong-based crypto exchange JPEX has suspended trading following an investigation by the Hong Kong Securities and Futures Commission (SFC). The investigation reached a notable phase when local police arrested crypto phenomenon and former lawyer Joseph Lam.
The SFC stated that JPEX is operating without a license in Hong Kong. Local police have received 83 complaints about the platform and conducted a morning raid on Joseph Lam’s office. Lam is alleged to have ties with JPEX. It was reported that among the evidence seized by Hong Kong police were some banknotes.
JPEX claims that they have been unfairly treated by relevant authorities in Hong Kong. The company stated that “our joint third-party market makers have maliciously frozen funds” and “restricted our liquidity, significantly increasing our daily operational costs.” As a result, the company will continue to process orders and adjust withdrawal fees. Additionally, JPEX is considering restructuring as a Decentralized Autonomous Organization (DAO).
Local media in Taiwan reported that JPEX’s Taipei office was recently vacated and authorities are questioning Taiwanese influencers hired by the exchange. It is noted that JPEX is licensed in Australia and registered as a Money Services Business (MSB) with the U.S. Financial Crimes Enforcement Network (FinCEN).
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