Hong Kong Exchange JPEX suspected of RugPull, Regulators Tighten Rules

In the latest development, blockchain analytics firm Bitrace stated the possibility of RugPull activities at Hong Hong exchange JPEX. The exchange faces charges of involvement in a money laundering scheme, with more than 190 million TRC20-USDT tokens passing through its platform over the last 20 months

Hong Kong police had previously detained an internet celebrity for endorsing JPEX, and they had received over 83 complaints related to the exchange, amounting to around HK$34 million. The recent disclosure by Bitrace introduces another dimension of risk, further complicating the scenario for investors and regulatory authorities.

The significant presence of risk TRC20-USDT on the platform raises concerns about potential involvement in a broader financial crime network. The Hong Kong Securities and Futures Commission (SFC) strongly urged to exercise the utmost caution when engaging with JPEX, particularly regarding deposit and withdrawal activities.

This development underscores the multifaceted risks associated with cryptocurrency investments. It emphasizes the importance for investors to not only consider the volatility of digital assets but also thoroughly assess the credibility and security of the platforms they choose to engage with

Hong Exchange Regulators Tighten The Rules

On Tuesday, September 19, Hong Kong regulators announced that they would tighten regulatory rules for digital assets after police arrested six people in allegations of fraud against the JPEX exchange.

The Securities and Futures Commission reported a staggering number of over 1,400 complaints directed at JPEX. As a result, the amount of losses exceeded 1 billion Hong Kong dollars ($127.9 million).

Additionally, numerous investors expressed grievances about their inability to withdraw virtual assets from JPEX accounts or discovered discrepancies in their account balances, which had been altered without their consent.

On Tuesday, Hong Kong’s chief executive, John Lee, stated that the government would step up efforts to educate investors and use only the exchanges regulated by the SFC. Over the last weekend, crypto exchange JPEX announced that it would be temporarily suspending operations.