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Taiwanese Singer Chen Lingjiu Implicated in JPEX Cryptocurrency Fraud Case

by Blockchain NewsNovember 9, 2023

The ongoing investigation into Taiwanese cryptocurrency exchange JPEX has taken a dramatic turn with the involvement of Chen Lingjiu, a well-known Taiwanese singer. As reported by Central News Agency on November 9, 2023, this development is part of a larger narrative of troubles surrounding JPEX, known for its rapid rise in the Asian cryptocurrency market and subsequent legal challenges.

JPEX, established in [Year], gained prominence for its innovative approach to cryptocurrency trading and diverse financial products. However, its growth was marred by regulatory scrutiny and allegations of operating outside legal boundaries. In [Month, Year], JPEX faced its first major challenge when regulatory authorities questioned its compliance with international financial regulations.

The case intensified when Chen Lingjiu, acting as JPEX’s spokesperson in Taiwan, was summoned as a defendant by the Taipei District Prosecutors Office. The Hong Kong police previously arrested JPEX executives, indicating a multi-regional investigation. Chen’s involvement has brought significant public attention to the case, highlighting the often-overlooked risks of celebrity endorsements in finance.

Chen, initially a witness, faced backlash due to his promotional role. His recent media statements reveal a 15% loss in his investments in JPEX, surpassing the earnings from his endorsement deal. This personal financial impact and his commitment to more prudent future endorsements shed light on the complexities celebrities face in such agreements.

The accusations against JPEX include fraudulent promotion of virtual currencies like JTC coin, with promises of high returns. Numerous investors have reported substantial losses, prompting legal actions against JPEX and its endorsers. The involvement of Chen Lingjiu has added a layer of complexity, as his celebrity status may have influenced investor decisions.

This case not only exposes the vulnerabilities in the cryptocurrency market but also emphasizes the responsibility of celebrities in endorsing financial products. As JPEX faces increasing legal scrutiny, the role of Chen Lingjiu illustrates the potential consequences of celebrity involvement in complex financial matters.

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HKPF and SFC Form Joint Working Group to Tackle Illicit Activities in VATPs

by Blockchain NewsOctober 8, 2023

The Hong Kong Police Force (HKPF) and the Securities and Futures Commission (SFC) have established a dedicated working group aimed at enhancing collaboration in monitoring and investigating illegal activities related to Virtual Asset Trading Platforms (VATPs). The formation of this group comes in the wake of ongoing investigations into the Dubai-based JPEX exchange and aims to bolster regulatory oversight in the rapidly evolving crypto market.

The working group was officially established on October 4, 2023, following a high-level meeting between the two parties on September 28, 2023. The group comprises officials from the HKPF’s Commercial Crime Bureau, Cyber Security and Technology Crime Bureau, and Financial Intelligence and Investigations Bureau, as well as the SFC’s Enforcement Division and Intermediaries Division.

The primary objectives of the working group are to:

1. Facilitate the sharing of information on suspicious activities and breaches related to VATPs.

2. Implement a mechanism to assess the risks associated with suspicious VATPs.

3. Enhance coordination and collaboration in related investigations.

Assistant Commissioner of Police (Crime), Ms. Eve Chung, emphasized the importance of the working group, stating, “The implementation of the new platform between the Police and the SFC is instrumental to fast-tracking vital intelligence exchange and joint collaboration in responses to the challenges arising from VATPs, so as to better protect the general public of Hong Kong.”

Similarly, the SFC’s Executive Director of Enforcement, Mr. Christopher Wilson, noted, “We have always valued our working relationship with the Police and we look forward to our even closer collaboration in deploying our respective expertise and resources in combatting problematic VATPs and protect the interest of investors.”

This initiative is part of a broader effort by Hong Kong regulators to tighten crypto market regulations. Days before the high-level meeting, 11 individuals were detained for questioning over their possible involvement in the JPEX scandal, where the SFC alleges that the firm has been operating in the region without a license. The SFC has since published a list of all licensed, deemed licensed, closing down, and application-pending exchanges, along with a list of “suspicious VATPs.”

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Tagged : HKPF / ILLEGAL ACTIVITIES / JPEX / News / REGULATORY OVERSIGHT / Sfc / VATPS / WORKING GROUP

Hong Kong Security Chief Vows to Hunt Down JPEX Crypto Scam Ringleaders

by Blockchain NewsSeptember 28, 2023

Key Takeaways

* Hong Kong Security Chief Chris Tang Ping-keung vows to hunt down ringleaders of JPEX, a crypto platform involved in the city’s largest alleged financial fraud.

* Police have arrested 15 individuals and seized assets worth HK$85 million ($10.8 million), including HK$8 million in cash.

* Financial Secretary Paul Chan Mo-po emphasizes the need for a proper regulatory framework for Web3-related business ventures.

The Ongoing Investigation

Hong Kong’s Secretary for Security, Chris Tang Ping-keung, has pledged to apprehend the key operators behind JPEX, a cryptocurrency platform at the center of the city’s largest alleged financial fraud, according to SCMP. As of September 27, 2023, the police have arrested 15 individuals and seized more than HK$8 million ($1 million) in cash, along with other assets valued at HK$77 million ($9.8 million). These assets include real estate and digital currencies. The case involves suspected losses of HK$1.5 billion ($191.9 million) and has impacted more than 2,400 victims.

Regulatory Concerns

Financial Secretary Paul Chan Mo-po stated that Hong Kong must regulate business ventures related to the next generation of the internet, known as Web3. “We must incorporate business operations related to Web3 into a proper regulatory framework and crack down on any illegal activities,” Chan said. Authorities aim to impose “balanced regulations” to protect investors and prevent money laundering risks.

The Arrests

Among the 15 arrested, one was Chung Wai-hin, a 23-year-old director of over-the-counter (OTC) cryptocurrency exchange store Money Lupin. Another was influencer Sheena Leung, who runs the YouTube channel “sheung-8888,” and a staff member of OTC cryptocurrency store Unicoin. On Monday, another director of Money Lupin, Wong Sheung-yin, was arrested.

Regulatory Oversight

The Securities and Futures Commission had earlier named JPEX as an unlicensed cryptocurrency exchange with “suspicious features.” Only two platforms, HashKey and OSL, have secured a license for retail cryptocurrency trading services in Hong Kong. Four other companies are pending approval.

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Tagged : CHRIS TANG PING-KEUNG / FINANCIAL FRAUD / Hong Kong / JPEX / MONEY LUPIN / News / PAUL CHAN MO-PO / REGULATORY FRAMEWORK / Securities And Futures Commission / Web3

HK SFC Details JPEX Probe; CEO Affirms Hong Kong’s Web3 Commitment

by Blockchain NewsSeptember 25, 2023

Key Takeaways

Hong Kong’s Securities and Futures Commission (SFC) has provided details on its investigation into the unlicensed virtual asset trading platform JPEX.

Over 2,000 people have reported being defrauded by JPEX, involving more than HKD 1.4 billion.

SFC CEO Leung Fung-yee emphasizes that the incident will not change Hong Kong’s direction in developing a Web3 ecosystem.

Background and Investigation Timeline

The Hong Kong Securities and Futures Commission (SFC) has shed light on its investigation into JPEX, an unlicensed virtual asset trading platform accused of fraud. The platform has received complaints from over 2,000 individuals, involving assets exceeding HKD 1.4 billion. The SFC began monitoring JPEX in early 2022, suspecting false claims on its website and advertisements. By July 2022, the platform was put on a watchlist due to its evasive responses. Formal investigations were initiated in June 2023, leading to an official warning issued on September 13, 2023.

Regulatory Stance

SFC CEO Leung Fung-yee stated that the incident underscores the importance of regulation. She emphasized that Hong Kong’s commitment to developing a Web3 ecosystem remains unchanged. “If there is no regulatory system, investors cannot identify which platforms are relatively safe and reliable,” Leung added.

Ongoing Police Investigation

When asked about the possibility of halting or collaborating with overseas financial regulators to block JPEX’s asset transfers, Christopher Wilson, Executive Director of the Regulatory Enforcement Department, said that the police are currently leading the related investigation and declined to disclose further details.

Transition Period Concerns

Regarding the 12-month transition period for virtual asset platforms to comply with new regulations, Huang Lexin, head of the SFC’s fintech group, said that the arrangement is to give platforms operating in Hong Kong reasonable time to apply for licenses and meet regulatory requirements.

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Tagged : Fraud / Hong Kong / JPEX / News / Regulation / Sfc / VIRTUAL ASSET TRADING / WEB3 ECOSYSTEM

JPEX Claims 70% of Voting Users Agree to Dividend Scheme; Lawmaker Warns of Debt Risks

by Blockchain NewsSeptember 24, 2023

Key Takeaways

JPEX, a virtual asset trading platform, has initiated a DAO stakeholder dividend scheme.

70% of participating users have reportedly agreed to the scheme.

Lawmaker Huang Junshuo warns that converting from creditors to shareholders could entail debt risks.

The platform is under suspicion for fraud, with at least 11 arrests and nearly HKD 1.37 billion involved.

Scheme Details and User Participation

JPEX, a virtual asset trading platform suspected of operating without a license, according to ON.cc, recently proposed a “DAO Stakeholder Dividend Scheme” for user subscription. According to the scheme, users can convert their dividends into an equivalent amount of Tether (USDT) with a two-year lock-in period. The voting for this proposal started on September 22, and JPEX claims that 70% of participating users have agreed to it. However, the platform did not disclose the total number of voters.

Lawmaker’s Warning

Accounting sector lawmaker Huang Junshuo, speaking on a radio program on September 23, warned that under this scheme, investors would only receive a maximum of 49% in dividends. This implies that the controlling stake still lies with JPEX. Huang cautioned that converting from creditors to shareholders does not necessarily mean the retrieval of investment funds. If the company incurs debt, investors could be liable.

Legal Troubles and Financial Risks

JPEX is currently under suspicion for fraud, with at least 11 people arrested and nearly 2,200 reports filed. The amount involved is approximately HKD 1.37 billion. The voting will continue until 8 PM on September 28 to decide whether to implement the scheme.

Financial Implications

The platform claims to offer 49% DAO stakeholder dividends, with a total value of approximately 400 million Tether (equivalent to about HKD 31.29 billion) for external subscription. Existing users can exchange their assets stored on the platform at a 1:1 ratio for dividends. The platform will buy back at 1% of the exchange price initially, 30% after one year, and 100% after two years.

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Tagged : DAO DIVIDEND SCHEME / DEBT RISKS / HUANG JUNSHUO / JPEX / News / Tether