JPEX Crypto Platform Halts Trading Amid Hong Kong Probe 

by: Yatriinfo.com

Hong Kong-based cryptocurrency platform JPEX has halted trading on its Earn Trading interface amid an ongoing investigation by local authorities. 

Effective from Monday, users are unable to place new orders for some wealth management products on JPEX's platform. 

JPEX is currently in talks with third-party market makers to address a liquidity shortage caused by the investigation. 

The Hong Kong police are investigating JPEX following a referral from the Securities and Futures Commission (SFC), alleging that the platform operated as an unlicensed entity. 

The SFC's warning to JPEX marks the first such warning issued by the regulator since efforts to establish Hong Kong as a crypto hub. 

Market makers on the platform have frozen funds in response to the ongoing investigation by Hong Kong authorities. 

Influencer Joseph Lam Chok was arrested in connection with the JPEX probe, with police officers confiscating materials during the arrest. 

Six individuals have been arrested for "conspiracy to defraud," and authorities have received over 1,400 complaints involving HK$1 billion ($127 million) related to JPEX. The investigation is ongoing, and more arrests could follow.