Joseph Lam, a Hong Kong influencer, disassociates from JPEX amid a major fraud investigation involving HK$1.37 billion, denying any wrongdoing.

Influencer Joseph Lam from Hong Kong has distanced himself from the cryptocurrency platform JPEX and refuted any accusations made during the exchange’s ongoing investigation. Lam announced yesterday (Friday) during a news conference that he has ended the lease on his office as well as closed his own business.

Lam abruptly cut off his relationship with JPEX following his arrest earlier this week, along with ten other people, all of whom were connected to a purported scheme to deceive investors. The case in question is the biggest of its kind in the city, involving an astounding HK$1.37 billion.

Saga of JPEX Exchange

Although Lam had been working as an insurance agent and a former barrister, he was dragged into the JPEX fold because to his involvement in an over-the-counter (OTC) crypto exchange store. Lam was released on bail without facing formal charges. Lam had announced on social media in July that he had applied to become a partner with JPEX. He also confirmed his partnership status to Ming Pao, a local news source that discovered his promotional efforts for the cryptocurrency platform.

But Lam withheld information about his level of involvement with JPEX from the press conference he just had. He only announced that he was closing his company and that he was ceasing operations on the platform.

Lam, who has a sizable Instagram following, was taken into custody by Hong Kong officials on Monday. There is a tight connection between his arrest and the JPEX trading halt. Authorities claim that JPEX was conducting business in the nation without the required license, which sparked a flurry of legal actions.

Following the detentions, Hong Kong police have frozen assets connected to the accused totaling more than HK$60 million. The exchange’s harsh response to an official crackdown led to an increase in JPEX’s legal battles. JPEX recently filed to have JP-EX Crypto Asset Platform PTY LTD (JPEX), its Australian firm, deregistered.

JPEX Is Under More Regulator Inspection

JPEX’s problems started to become apparent after the Securities and Futures Commission (SFC) of Hong Kong issued a warning. The SFC exposed that JPEX had fabricated an application to obtain a license from the authority, raising questions about the veracity of the exchange’s activities. Investors were alarmed by the SFC’s allegations that JPEX’s other license assertions were likewise untrue.

The drama started when JPEX announced that it had suspended all trading operations, citing a number of difficulties it had encountered following unfavorable press and what it believed to be unjust treatment by relevant Hong Kong authorities. As per the exchange’s blog post, “our partnered third-party market makers have maliciously frozen funds” and these market makers were requesting further information for negotiation, which therefore limited the exchange’s liquidity and raised its daily operating expenses dramatically.

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