Fake JPEX Coin Debuts as Exchange Suspends Trading Amid Regulatory Scrutiny
Hong Kong authorities reportedly detained crypto influencer Joseph Lam (Lin Zuo), also known as "jolamchok" on Instagram, for his involvement with cryptocurrency exchange JPEX.
The Hong Kong-based cryptocurrency exchange, JPEX, has decided to halt trading following an investigation by the Hong Kong Securities and Futures Commission (SFC).
This inquiry has led to the arrest of an individual affiliated with the exchange, revealing that JPEX had been operating in Hong Kong without the necessary license. Complaints about the platform have been mounting, prompting police involvement.
Amid the sanctioning, someone made a crypto token named JPEX coin which is surrounding around various crypto exchanges where victims are falling for the scammy project.
JPEX Liquidity Woes and Structural Contemplations
JPEX has faced liquidity challenges, citing mistreatment by relevant institutions and third-party market makers freezing funds. As a result, the exchange is taking measures to address these issues. Starting Monday, JPEX will delist all transactions on its Earn Trading interface and adjust withdrawal fees.
Additionally, the exchange is exploring the possibility of restructuring as a Decentralized Autonomous Organization (DAO).
On the other hand, the recent liquidity crisis at JPEX has a surprising connection to a Hong Kong-based social media influencer, Joseph Lam, known as "jolamchok" on Instagram. Lam has reportedly been arrested for his involvement with the exchange Authorities executed a raid on his office, seizing potential evidence, including a bag of banknotes.
Lam's association with JPEX included alleged presentations of investment schemes, which reportedly led one individual to invest 100,000 Hong Kong dollars ($12,800) in cryptocurrency.
Lam, in response, claimed on social media that he was not directly impacted by the JPEX incident, adopting a resilient stance.
FUZZ Around JPEX Coin
The exchange has recently raised eyebrows for offering an almost unbelievable annual percentage yield (APY) of nearly 30% on stablecoin staking.
JPEX has further raised suspicion by introducing an exchange token, $JPEX, with an astronomical fully diluted value of $200 billion. Intriguingly, the exchange has boldly advertised on Hong Kong taxis, asserting that $JPEX will skyrocket from its current value of $0.02 to $1.
While seasoned crypto veterans might immediately recognize this as a scam, JPEX's marketing strategy targets novice traders and individuals unfamiliar with the intricacies of the crypto market.
As authorities attempt to crack down on potential fraudulent activities, JPEX has invoked its right to adjust withdrawal fees, imposing a staggering $999 fee on a maximum withdrawal of $1000. While this move may provide a temporary shield, legal experts speculate that such a strategy may not hold up in the long run. Time may be running out for JPEX as investigators keep a watchful eye on the unfolding situation.
Conclusion
JPEX attributes its liquidity crisis to regulatory pressures and actions taken by third-party market makers. The exchange commits to restoring liquidity and gradually normalizing withdrawal fees once negotiations with market makers are concluded.
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