Hong Kong Police Reveals JPEX Operation Model and Promotional Techniques

Odaily News According to Hong Kong Wen Wei Po, the Hong Kong SAR government police and the Securities and Futures Commission jointly held a press conference yesterday to announce the JPEX case. The police comprehensively analyzed the operation mode and promotion methods of the virtual asset trading platform JPEX, saying that there are five elements that constitute suspected fraud: 1. JPEX has not applied for or holds a Securities and Futures Commission license at all, but stated on its website that it is “a licensed company and is subject to A recognized digital asset and virtual currency platform, it also uses advertising, media, over-the-counter (OTC) shops and Internet celebrities to promote it to create popularity and attract investors. 2. Some Internet celebrities make false and misleading statements, and show off their wealth online to create the appearance of getting rich by buying coins to increase their persuasiveness. However, since the China Securities Regulatory Commission has issued warning letters to relevant parties and physical stores in advance, some It is believed that the person involved knew that JPEX’s methods were illegal, but still promoted them to customers. 3. After JPEX users register, they can exchange different cryptocurrencies on the platform, or transfer virtual assets to their JPEX account on foreign platforms for trading. However, the investigation found that JPEX also issued JPC virtual currency, but JPC is different from other mainstream cryptocurrencies: JPC cannot be traded on other platforms, nor can it be used for payment purposes. Some victims were persuaded to buy JPC and used it as a so-called pledge similar to a time deposit, and only received extremely high returns after the pledge expired. JPEX will also require customers to provide private keys for cryptocurrency for safekeeping, and JPEX basically uses this method to control users assets. 4. After being warned by the China Securities Regulatory Commission, JPEX arbitrarily set the upper limit for users to withdraw assets to US$1,000 and charged a handling fee of US$999, thus restricting the withdrawal of assets in disguise. 5. By the early morning of the 18th, all financial transaction services were removed from the JPEX website.