JPEX Case Involves HKD 1.2 Billion - What Issues Should Investors Be Vigilant About?

On September 19th, the Hong Kong police announced that they had received reports from over 1,600 individuals regarding the JPEX case, involving approximately HKD 1.2 billion. Eight individuals related to the case have been detained.

So, what is the JPEX case all about? Let's take stock together.

On September 13th, the Securities and Futures Commission (SFC) of Hong Kong issued an announcement stating that "none of the entities under the JPEX Group were licensed by the SFC, nor did they apply to the SFC for a license to operate a virtual asset trading platform in Hong Kong." 

The SFC also pointed out that "the virtual currency trading platform JPEX actively promoted its services and products to the Hong Kong public through social media influencers and over-the-counter virtual asset currency exchange merchants."

After the announcement by the SFC, users reported difficulties in withdrawing their funds, with some mentioning a maximum withdrawal limit of 1000 USDT and exorbitant withdrawal fees of up to 999 USDT. In response, the SFC stated that they would seek assistance from the police.

On September 14th, the Hong Kong police received a referral from the SFC and subsequently arrested six individuals on suspicion of conspiracy to defraud.

On September 16th, the Commissioner of Police in Hong Kong stated in an interview that around 80 people had lodged reports, involving an amount of 34 million Hong Kong dollars.

On September 18th, the Hong Kong police reported that the JPEX case involved 1 billion Hong Kong dollars, with approximately 1400 individuals filing reports.

On September 18th, the virtual currency platform JPEX issued a statement accusing the SFC of unfair treatment and stating, "Even in the face of a series of challenges, JPEX will continue to operate resolutely and will not collapse due to the irreversible policy risks. The dedicated team for emergency withdrawal applications will continue to assist users with priority withdrawals."

As of this writing, the JPEX case is still ongoing, and the police have frozen some funds, estimating that a certain amount of funds will be returned to users in due course. Therefore, if you are one of the victims, there is no need to panic excessively.

In reality, such incidents are not uncommon in the cryptocurrency industry. This is not the first time and certainly won't be the last. Hence, it is important to remain vigilant and consider the following:

- Do not easily trust projects or exchanges endorsed by influencers.

- Verify through official websites of regulatory authorities whether they have obtained valid operating licenses.

- Try to stay away from new virtual currency platforms/exchanges.

- Diversify funds across different platforms to mitigate potential risks.