Hong Kong, October 4, 2023 – JPEX, a cryptocurrency exchange based in Hong Kong, is under intense scrutiny and facing allegations of fraud, as Hong Kong authorities make a series of arrests in connection with the case. The exchange had previously presented itself as an Australian-licensed business but was later found to be registered in a North Sydney apartment building.
Investors are grappling with the shock as assets worth up to HK$1.5 billion (US$300 million) have been frozen amidst the investigation. The Securities and Futures Commission (SFC) revealed that JPEX misled investors by falsely claiming to have applied for trading licenses in multiple countries, including Australia, Canada, and the United States.
JP-EX Crypto Asset Platform, the entity behind JPEX, applied for de-registration on the same day that Hong Kong police arrested its staff. The situation has become even more convoluted with the involvement of Sydney-based voice presenter and actor Jeremiah Hartmann, who appeared in JPEX promotional videos, although he denies being an employee.
The allegations against JPEX are the first major test case for Hong Kong’s recently introduced licensing regime for retail trading by licensed exchanges. So far, 18 individuals have been arrested in connection with JPEX, and Hong Kong police are collaborating with Interpol to locate company executives. JPEX claims its attempts to consult with the SFC have been dismissed or sidestepped, adding further complexity to the unfolding investigation.
