JPEX Exchange Faces Suspicions of RugPull as Regulators Bolster Regulations

21/9/2023

Hong Kong regulators are tightening rules in response to allegations of fraud against the JPEX exchange. Blockchain analytics firm Bitrace has suggested the possibility of RugPull activities at JPEX, which is also facing money laundering accusations involving over 190 million TRC20-USDT tokens. Hong Kong police have detained an internet celebrity for endorsing JPEX, and numerous complaints totaling around HK$34 million have been filed against the exchange.

The presence of significant risks associated with TRC20-USDT tokens on the platform raises concerns about potential involvement in broader financial crime networks. The Hong Kong Securities and Futures Commission (SFC) has cautioned investors to exercise extreme caution when dealing with JPEX, especially regarding deposits and withdrawals.

This situation highlights the multifaceted risks of cryptocurrency investments and emphasizes the importance of evaluating the credibility and security of chosen platforms. In response to these issues, Hong Kong regulators have announced plans to tighten regulatory rules for digital assets after several arrests related to fraud allegations against JPEX. Over 1,400 complaints have been directed at the exchange, resulting in losses exceeding 1 billion Hong Kong dollars. The government aims to educate investors and promote the use of SFC-regulated exchanges, and JPEX has temporarily suspended its operations.

Resource: https://coingape.com/hong-kong-exchange-jpex-suspected-of-rugpull-regulators-tighten-rules/