The Chief Executive spoke up, with over a thousand people reporting cases involving over HKD 1 billion in funds
On the 18th, the Hong Kong police arrested six people in a case, including internet celebrities Lin Zuo and Chen Yi, who were suspected of "conspiring to commit fraud.". The police said that more than 1400 victims have reported cases, involving more than 1 billion yuan.
The person involved in the case was arrested by the police. The illegal virtual asset trading platform with illegal images is plagued by dark spots. Some insiders have exposed various tricks in the industry to Hong Kong media, including: using celebrity effects to attract money, then quickly fleeing with money; Creating "shadow" fake platforms, diverting customer funds, etc. In addition, the trading "big crocodiles" are more confrontational, creating chaos in the financial market, and so on.
Earlier, JPEX, a virtual asset trading platform, was accused by the China Securities Regulatory Commission of engaging in unlicensed operations, and later transferred to the Hong Kong police for follow-up. On the 18th, the Commercial Crime Investigation Department of the police searched multiple search and exchange shops and arrested 6 people, including KOL Lin Zuo, who has always been known for his outstanding style, and another KOL Chen Yi. The police said that more than 1400 people have reported cases so far, involving over 1 billion yuan, and victims have suffered losses of over one million yuan.
Lin Zuo opened an over-the-counter cryptocurrency exchange store OTC at Central Entertainment and claimed to apply to become a partner of JPEX. On the morning of the 18th, personnel from the Commercial Crime Department went to the above-mentioned office to arrest Lin Zuo on suspicion of conspiracy to commit fraud, and searched Lin's office. They stayed for about two hours and took Lin back to the Central District Police Station for investigation. At the scene, the detective seized multiple boxes of evidence, including a batch of documents and cash. Lin Zuo is suspected of promoting JPEX on social media platforms and providing discount codes to attract account opening, violating the Securities and Futures Ordinance.
On the morning of the 18th, another KOL, Chen Yi, who runs a cryptocurrency exchange shop, was also arrested on suspicion of colluding with fraud. The main entrance of the "Chen Dayi Find and Exchange Store" office located in Jiandong Yong'an Square was enclosed by a fence. After police officers entered and searched, they took away a batch of evidence, including a batch of cash.
As of 2pm on the 18th, the police have received 1408 reports of JPEX related incidents, involving approximately 1 billion yuan. The police stated that after receiving a referral from the China Securities Regulatory Commission last week, the Commercial Crime Department conducted an in-depth investigation and arrested four men and two women on suspicion of conspiracy to commit fraud in multiple districts on the 18th. All of them were detained for investigation, and the operation is still ongoing. It is not ruled out that more people will be arrested.
The China Securities Regulatory Commission (CSRC) recently issued a statement stating that it has noticed a virtual asset trading platform called JPEX, which promotes its services and products to the Hong Kong public through internet celebrities and off exchange shops. It also pointed out that entities under JPEX Group have not been licensed by the CSRC or applied for a license to operate a virtual asset trading platform in Hong Kong. The statement also refers to internet celebrities and off the exchange shops making false or misleading statements on social media.
Starting from 0:00 on the 18th of JPEX, all transactions on the wealth management page will be taken down, and users will not be able to make any new wealth management orders. Existing ongoing wealth management orders will be maintained until the end date of the product. Later on the same day, there will be another announcement stating that it will continue to operate.
In response to this, Chief Executive Li Jiachao stated in a meeting with reporters before attending the guild meeting today that he is very concerned about the JPEX case and requests the China Securities Regulatory Commission and the police to meet with the media in the afternoon. Regarding the development of virtual assets, Li Jiachao said that the policy of the SAR government is: firstly, effective regulatory systems are needed to protect investors, and secondly; Information dissemination needs to be open and transparent; Thirdly, attach importance to and promote investor education to ensure that the public fully understands asset risks and operational situations.
Li Jiachao continued to say that the JPEX incident reflects the importance of regulation, the importance of investing in regulated and licensed trading platforms, and the importance of personal awareness and risk of virtual assets. The China Securities Regulatory Commission monitors the changes and developments in the market to ensure that the interests of investors are fully protected. The SAR government will also vigorously promote investor education.
Original "Hong Kong Police Arrest 6 People for Conspiracy in Fraud Involving Over HKD 1 Billion Li Jiachao: Very Concerned"
