JPEX claims unfair treatment by SFC, vows to uphold Web 3.0 vision, 6 arrested in total by authorities (Updated: 7.15pm)


18th September 2023 – (Hong Kong) Recently, the Securities and Futures Commission (SFC) has accused the virtual asset trading platform “JPEX” of operating without a licence. Joseph Lam Chok, who previously claimed to be a partner of JPEX on social media, has distanced himself from the platform. However, as of today (18th), Joseph Lam Chok has been arrested by law enforcement officials on suspicion of “conspiracy to defraud” in connection with the case. In addition, there are reports that a social media influencer, Chan Yee, who is suspected of promoting JPEX, was also arrested this morning. The latest reports indicate that a total of 4 men and 2 women have been arrested in connection with the JPEX case, and law enforcement officials have received approximately 1,408 reports, involving around HK$1 billion in funds.

In response, JPEX has come forward to shed light on the unfair treatment it has faced from the Securities and Futures Commission (SFC) of Hong Kong. The platform, allegedly known for its commitment to promoting the development of the blockchain industry and the cryptocurrency market globally, expressed deep disappointment with the SFC’s actions that disrupt market order and undermine Hong Kong’s Web 3.0 aspirations.

Since its inception, JPEX said that it has always adhered to the idea of building a Web 3.0 world, striving to strike a balance between safeguarding user rights, adhering to policy regulations, and upholding the original intention of blockchain development. When the Hong Kong government announced its focus on Web 3.0 projects for future development, JPEX said it saw an opportunity to contribute to the expansion of Web 3.0 in Asia and shifted its development focus accordingly.

To ensure stable operations in Hong Kong, JPEX said it has been diligently preparing to comply with the cryptocurrency regulatory system within the grace period for the license system. The platform claimed further that it has maintained open communication with the SFC, seeking guidance and cooperation. However, despite their efforts, JPEX said it faced continuous unfair treatment, contrasting the promises made by the SFC.

Email received by JPEX from SFC.

On 13th September, 2023, the SFC issued a statement against the JPEX cryptocurrency trading platform, leading to third-party market makers partnered with JPEX freezing funds maliciously. This action has allegedly caused significant operational difficulties for the platform. In response, JPEX claimed to have sought guidance from the SFC on 15th September, 2023, but received an inadequate response.

JPEX, as an operator in the cryptocurrency industry and a self-claimed champion of the Web 3.0 concept, expresses its disappointment in the SFC’s biased stance, which not only contradicts the government’s policy development direction but also fails to fulfill its role as a fair and impartial regulator. JPEX added that this unfair treatment not only hinders JPEX’s operations but also negatively impacts the multitude of investors in Hong Kong.

Undeterred by the challenges faced, JPEX said it remains steadfast in its commitment to the cryptocurrency industry and the Web 3.0 vision. Despite the severe challenges caused by irreversible policy risks, the platform vows to continue to operate and prioritised providing withdrawal assistance to its users. JPEX added that it aims to serve as an example to showcase whether the SFC is genuinely facilitating Hong Kong’s journey towards becoming a Web 3.0 city.

JPEX also extended its heartfelt gratitude to its users for their ongoing support and patience during these trying times.