Hong Kong Authorities Vow to Prevent a Return of the JPEX Scandal

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  • Hong Kong securities and law enforcement authorities have announced plans to prevent a return of the JPEX scandal and bring those involved to justice
  • The country’s securities watchdog said it’ll release a list of crypto operators and their registration status
  • Law enforcement agencies have revealed plans to involve Interpol in hunting down JPEX scandal masterminds

The JPEX scandal has forced authorities in Hong Kong to look for ways to prevent a similar occurrence in the future. Some of the plans include the country’s securities watchdog providing the public with a list of crypto operators in the country, their regulation status and whether they display any suspicious characteristics. The Hong Kong police have also disclosed that they’ll involve Interpol in tracking the scandal’s masterminds, something that’s likely to bear fruits considering OneCoin’s co-founder was recently sentenced to 20 years in prison due to the involvement of multiple law enforcement agencies.

Putting Measures in Place

In an announcement, the Hong Kong Securities and Futures Commission (SFC) revealed that it’s “putting in place a series of measures to reinforce information dissemination and investor education.” 

Some of the measures include listing “licensed […] closing-down […] deemed licensed ” and crypto providers seeking the regulator’s nod to enter the Hong Kong market. SFC added that it’ll also keep a list of crypto exchanges with questionable practices.

The Hong Kong police, on the other hand, has disclosed an intention to involve Interpol in hunting down key figures behind the JPEX scandal. According to the law enforcement agency, the scandal’s masterminds are still at large despite arresting over 10 suspects.

$170 Stolen from Over 2,000 Victims

The scandal is estimated to involve over $170 million siphoned from more than 2,000 victims. Most of the victims were enticed into using the malicious JPEX exchange through flashy promotions involving celebrities and YouTubers.

JPEX’s problems started manifesting early this month when users reported difficulties withdrawing their funds and experiencing inflated withdrawal fees close to $1,000 per withdrawal. Initially, the exchange blamed its woes on a third party responsible for providing liquidity. Currently, only two crypto exchanges are licensed to operate in Hong Kong.

With the SFC and the Hong Kong police partnering to weed out malicious crypto exchanges in the country, the number of such scandals will likely drop.