- Investigations into the liquidity crisis of the cryptocurrency exchange JPEX led to the arrest of a social media influencer with a base in Hong Kong.
- Miss Chen, one of the alleged victims, was persuaded to invest $12,800 in cryptocurrency.
Investigations into the liquidity crisis of the cryptocurrency exchange JPEX led to the arrest of a social media influencer with a base in Hong Kong, according to reports.
According to a South China Morning Post story, Hong Kong authorities allegedly detained cryptocurrency influencer Joseph Lam (Lin Zuo), also known by the Instagram handle “jolamchok,” for his connections to JPEX. The report also claims that during the police raid on his office, evidence boxes, including a plastic bag of cash, were taken.
In a recent statement, according to a local report, the Hong Kong Securities and Futures Commission (SFC) accused JPEX of actively pushing the platform’s offerings to the Hong Kong public through internet celebrities and over-the-counter money changers.
According to a different unsubstantiated source, Lin Zuo allegedly pitched “schemes” to a chat group set up for cryptocurrency investing. According to reports, Miss Chen, one of the alleged victims, was persuaded to invest $12,800 in cryptocurrency. As stated in the report:
“He from time to time claimed in the group that people kept looking for him to ‘pay money,’ threatened that ‘the amount of money on these two days is five times the usual.'”
The influencer uploaded a caption saying, “Whatever doesn’t kill you makes you stronger,” along with a news item on September 17 that said he “was not hit in the JPEX incident.”
The event came before Zuo, and his solicitors went to the police to provide them with the information they needed.
Due to a liquidity problem, the platform had to raise withdrawal fees and cease some operations. JPEX blamed regulators and “third-party market makers” for the situation.
They pledge to return liquidity from outside market makers as soon as possible and progressively bring withdrawal fees back to market levels, according to a statement from JPEX, adding that further information will be released after discussions are complete.