Involved artists such as Zhang Zhilin, Hong Kong virtual asset trading platform JPEX investigated: involved HKD 1.3 billion
Recently, the Hong Kong virtual asset trading platform JPEX has been involved in unlicensed operations and has been suspected by the Hong Kong Securities Regulatory Commission of engaging in fraudulent activities, once again triggering a "cryptocurrency regulatory storm". Among them, the amount involved exceeds HKD 1.3 billion, involving multiple Hong Kong artists and social media influencers such as Zhang Zhilin and Zhuang Simin.
On the evening of September 21st, Zhang Zhilin's Weibo account issued a clarification statement stating that in March last year, Zhang Zhilin's agent company invited him through an advertising agency to shoot commercials and hard photos for JPEX. Subsequently, as the company learned that JPEX was listed as an unlicensed company and suspicious website by the China Securities Regulatory Commission, it officially notified the advertising agency in September last year to immediately terminate the cooperation agreement.
The clarification statement mentions that regarding the JPEX incident, Zhang Zhilin was invited by relevant parties to assist in the investigation on September 19th and has provided the necessary assistance.
The Hong Kong Securities and Futures Commission has made two statements pointing to JPEX's unlicensed operations and suspected illegal activities
As early as September 13th, the Hong Kong Securities and Futures Commission issued a warning statement on its official website, stating that it had noticed a virtual asset trading platform called "JPEX" actively promoting its services and products to the Hong Kong public through social media influencers and off exchange virtual asset currency changers.
The Hong Kong Securities and Futures Commission pointed out that none of JPEX Group's entities have been licensed by the Commission and have not applied for a license to operate virtual asset trading platforms in Hong Kong. The methods used by JPEX and those actively promoting JPEX to the Hong Kong public, as well as off exchange virtual asset currency traders, have many suspicious aspects and may be suspected of being illegal.
On September 20th, the Hong Kong Securities and Futures Commission issued another statement regarding JPEX's suspicious business practices and activities, as well as its false and misleading statements regarding communication with the Hong Kong Securities and Futures Commission.
Due to JPEX's non cooperative attitude and failure to respond substantively to the requirements of the China Securities Regulatory Commission, the Commission subsequently added JPEX to the Commission's list of unlicensed companies and suspicious websites in July 2022.
The Hong Kong Securities and Futures Commission (CSRC) has confirmed that JPEX has never approached the CSRC regarding potential license applications, and none of JPEX Group's entities have been licensed by the CSRC, nor have they applied to the CSRC for a license to operate virtual asset trading platforms in Hong Kong. Therefore, there was no communication between the China Securities Regulatory Commission and JPEX regarding licensing matters.
The Hong Kong Securities and Futures Commission pointed out that the information obtained later raised suspicions that the case involved fraudulent activities, so it has been referred to the police for processing. Due to the ongoing investigation, the China Securities Regulatory Commission is unable to provide further comments.
The Hong Kong police have launched a large-scale law enforcement operation on the above-mentioned case since September 18th, and at least 11 people have been arrested so far. As of 5pm on September 21, the Hong Kong police have received 2197 reports from victims, involving an amount of approximately HKD 1.37 billion. The arrested individuals include the company head and employees of JPEX, store owners Lin Zuo and Chen Yi who were looking for a change outside the venue, and BeatBox singer dR X Huang Haobang, as well as famous figures in the cryptocurrency industry such as Zhu Gongzi and Zhu Jiahui. In addition, two Hong Kong artists, Zhang Zhilin and Zhuang Simin, have assisted the police in their investigation.