Since the statement of the Hong Kong Securities and Futures Commission on September 13, the "JPEX incident" has attracted great attention and caused a stir in both the crypto and society. This "suspected gold-absorbing scam (fraud)" has been reported by Hong Kong The police attach great importance to it. The Hong Kong Securities and Futures Commission clearly pointed out in the statement that JPEX uses Internet celebrities and over-the-counter traders to promote it to the Hong Kong public, but in fact it is an unlicensed virtual asset trading platform and has not applied for a license from the authorities. So, how did these Internet celebrities and over-the-counter traders participate in this "suspected money-making scam (fraud)"? BlockCast interviewed Christina (pseudonym), a JPEX Hong Kong user, hoping to provide a reference for readers through her sharing and personal experience. BlockCast urges you to conduct due diligence and carefully assess risks before making any investment.
What message does Lin Zuo's arrest bring? What is the "JPEX Partner" program?
When Hong Kong Police Commissioner Siu Chak-yi met with the media on the morning of last Saturday (16th), he stated that the Commercial Crime Investigation Bureau was investigating and called on the public to use the hotline to report crimes and make inquiries. As of this morning (18th), citing Hong Kong media sources, commercial crime cases The Investigation Bureau has arrested former barrister Lin Zuo, who once claimed to be a partner of JPEX, and launched a raid on his "Lin Zuo OTC" company located in Queen's Road Central, Central.
Image source: Telegram group
Lin Zuo recently attended a public event suspected to be supported by JPEX.
Lin Zuo once promoted the use of the JPEX trading platform and its platform currency JPC to the public in offline activities. (Image source: Telegram group)
Lin Zuo had previously written an article to "rehabilitate" JPEX in his column, which was questioned by readers as "whitewashing" the JPEX platform he promoted.
Last month, Lin Zuo shared in a high-profile post on his IG that he was engaged in cryptocurrency-related work or participated in cryptocurrency investments. He earned up to 745,000 Hong Kong dollars that month. He even bluntly said that it was better than his previous job in the insurance industry. Many times better. This sharing caused great repercussions and controversy in the crypto. Some investors therefore believed in the investment products and platforms promoted by Lin Zuo, while others questioned why Lin Zuo had this suspected commission. (Image source: Telegram group)
In this operation, we can see that the Hong Kong police, in addition to investigating the JPEX company and its operating team, have also vigorously promoted the JPEX platform in the past and stated that they are "investment KOLs" and "leaders of JPEX partners". "Teacher Shan" and "lecturer" may all be arrested by the police. As seen from the official announcement issued by JPEX on June 29, 2022, "JPEX Partners" can obtain some benefits from the JPEX platform, the most noteworthy of which are "monthly rewards", "financial management/spot/contract rebates" Commission." From these clearly detailed figures, it can be seen that becoming a "JPEX partner" can allow these investment KOLs and teachers to "make profits without any capital", and even earn them a "first pot of gold." According to online discussions, these partners also have exclusive withdrawal channels, meaning they can enjoy withdrawal methods that are different from ordinary users, and are suspected of receiving withdrawal protection.
Image source: JPEX official website
In the past, the self-proclaimed most influential crypto media promoted the JPEX platform with high profile and published at least more than 20 articles. One of them clearly mentioned the multiple benefits that can be enjoyed by becoming a JPEX partner. This article first appeared in April 2023. On March 21st, for some reason, the promotional article was suddenly taken down (at the time of writing this article). BlockCast tried to reproduce the main content of the article for readers through web.archive . Among them, it was mentioned that JPEX partners can enjoy "extreme speed" Withdraw” the exclusive green channel to deposit and withdraw coins quickly. Then on September 13th, users’ withdrawals were suddenly stopped or restricted. However, in the early morning of the 14th, users discovered from on-chain data that JPEX transferred multiple large-amount transactions to newly opened addresses during the withdrawal restriction period, and even one transaction occurred. For transactions exceeding US$1 million, is this related to these exclusive green channel partners with "fast cash withdrawals"? Or is it a "special withdrawal" carried out by the platform specifically for "special" customers?
The media published an article introducing the JPEX Partner Program in April.
The content details the details of the JPEX Partner Program
After the JPEX exchange was exposed to problems, the media has removed the article from the shelves
BlockCast exclusive interview with JPEX Hong Kong users revealed how they were “brainwashed” and how they felt very disappointed with their “teachers” in life.
Although JPEX has officially claimed to be an international cryptocurrency trading platform in the past, according to unofficial statistics, the users of this platform are mainly Hong Kong people. This is why in the past few years, JPEX has not hesitated to spend a lot of money on TV channels and buildings in Hong Kong. Exterior walls, taxi bodies, MTR platforms and other places where citizens come into contact with daily are vigorously promoted, and many celebrities in the entertainment industry and KOL platforms are invited. Under the overwhelming publicity offensive, many investors even started to At that time, they had mistakenly believed that the platform had obtained a legal operating license. According to users, because JPEX officials and its partners have repeatedly shared information about applying for licenses in user groups and its social media platforms, users have been successfully "brainwashed."
Chen Yi, one of the partners of JPEX, wrote on his personal YouTube channel a few months ago that "JPEX will definitely get (the license)", which means that the JPEX trading platform is 100% able to obtain a license from the Hong Kong regulatory agency, and even more so. "JPEX has applied for a license," which is being slapped in the face by the Hong Kong Securities and Futures Commission. The regulatory agency specifically emphasized in a statement on the 13th that "None of JPEX's entities have been licensed and have not applied for a license from the authorities. Therefore, they have Relevant parties are requested to stop promoting any products and services related to JPEX."
In addition to publicly promoting JPEX as a trading platform that can be licensed, Chen Yi also bluntly said, "JPEX accounts for at least 70% of the market in Hong Kong. If JPEX cannot (cannot) obtain a license, Basically, you can’t get it from other exchanges (it’s basically impossible to get it from other exchanges).” In view of the fact that this suspected fraud case of JPEX has caused considerable harm to Hong Kong users, BlockCast specially found a JPEX Hong Kong user for an exclusive interview. The interviewee Christina (pseudonym) is also a loyal fan of Chen Yi. According to her She revealed that she started watching Chen Yi’s channel when she was in high school, and now that she has graduated from college, she has followed Chen Yi for so many years. She described Chen Yi as if she was her “teacher,” but “I didn’t expect that she would lie to others. "
Image source: Chen Yi’s YouTube channel
Christina said that she first became aware of the JPEX trading platform through the well-known YouTuber Chen Yi. She has been using JPEX for 2 years and has invested HK$300,000 in principal. Currently, Christina still has assets that cannot be withdrawn on the JPEX platform. When asked about the channels or contacts through which she learned about the operation of the JPEX platform during the period of using JPEX, Christina said that they all relied on joining some Telegram groups, such as Chen Yi's investment group. Christina admitted that she was influenced by some people, so she became interested in the JPEX platform and the investment products it promoted. She mentioned by name "Chen Yi, and there are other KOLs such as Dongji, Lin Zuo, and Chen Dingbang. I saw that even Chen Dingbang Recommended because he believes in numerology and feng shui, so it greatly enhanced my confidence."
So how do these KOLs (actually probably JPEX partners) convince investors, especially retail investors, to believe in JPEX and the investment products on the platform? Christina pointed out, "These KOLs claim that they have inside information, that is, they clearly say a number, such as it will rise to 0.034 next month, which is convincing." Then JPC did rise! So Chen Yi is also a member of JPEX? Or is Chen Yi also deceived by JPEX? "I think they are a group, otherwise why would there be such accurate inside information?" Christina even mentioned, "She (Chen Yi) has promoted BRK since early in the morning, so I reasonably suspect that she may not be the financial backer behind the scenes, but she is also a Partner."
Chen Yi provided the signal of JPEX platform currency JPC in her OTC group and said, "There is too much information to talk about, so I will try to understand it myself." This seems to imply that she has inside information and knows that JPC will soon reach the price of $0.08. . (Image source: provided by group members)
"These KOLs will also make accusations against JPEX. For example, if someone finds out that the platform does not have a company in Hong Kong, some KOLs will say that the company is in Australia, and then they will continue to use easy ways to get rich, and even say that the government wants us to be slaves. They use words such as financial freedom to make us want to buy the investment products they promote, and their inside information is accurate, so we really believe it and deposit money." Christina shared that she had successfully withdrawn money before, but at the time she would not be right about it. The JPEX platform became suspicious, "and these OTCs all have physical stores", so they later deposited money to participate in the investment. Christina added that after the Securities Regulatory Commission issued the statement, many partners, KOLs, etc. deleted their articles on the same day and deleted the records of how they touted JPEX and JPC coins in the past. Based on the KOL list provided by readers, BlockCast tried to find the YouTube clips, live broadcast content, etc. of these KOLs. Indeed, many of them have been deleted.
Regarding the "teacher" who has been following her for so many years, but her image in Christina's heart was completely destroyed overnight, Christina said, "I have been watching her for 6 years, starting from the time when she only had 12k followers. I feel... It was good at the beginning, but it seems to have gradually deteriorated, and now I think she is a little crazy, crazy." Why did you have such firm confidence in Chen Yi before, and even invested all your money in JPEX recommended by Chen Yi? "The image she established was that women should be financially independent and benevolent. She often helped people in need and really gave money to everyone." This made Christina admire and respect this "teacher" very much in the past. However, this JPEX incident taught Christina and her boyfriend a "shock education." As an experienced person, Christina reminded other users and investors, "I think the most effective way is to treat everyone around you as a liar, remember Stop! No one really wants you to be good, and all KOLs will deteriorate one day. So it is best to think in reverse, that is, first assume that the other party is bad, and then slowly verify whether this assumption is true. " Christina also half-jokingly mentioned, "But I still think the most effective way is to hit the board once. After hitting it once, everyone will wake up."
At the time of writing this article, Chen Yi was arrested by the Hong Kong police on the grounds of "promoting the JPEX platform" and "suspecting conspiracy to commit fraud."
JPEX spends a lot of money to advertise, find spokespersons, hold events, and rent buildings. Where does the money come from?
According to the photo information provided by a reader of BlockCast, another JPEX partner, Hong Kong Coiner OTC boss Priscilla, made it very clear to the public at a lecture on March 11. , the target price of JPEX platform currency JPC can reach US$0.02 in the next April. At that time, many investors were convinced, mainly because these partners had said that they had inside information, and even told them with a "very firm" attitude Followers and group members expressed that "ALL IN JPC must be considered".
In addition to promoting the JPEX platform in Hong Kong, Priscilla, the owner of Coiner OTC in Hong Kong, has also set foot in Taiwan this year. In fact, BlockCast was the first to reveal JPEX's suspected misappropriation of customer assets on July 6. The cause of this incident was that JPEX hosted the "The Cage 2023 Final Battle" event in Taiwan and declared that ""The Cage 2023 Final Battle"" "The Final Fight" is the first smart contract in the history of boxing. "This boxing match will use smart contracts in blockchain technology to distribute boxing rewards to boxers. It is the world's first smart contract related to boxing. According to the data search, The value of the cryptocurrency involved in this smart contract was 390,000 USDT, and the community conducted in-depth research and discussion on this 390,000 USDT, but was shocked to find that "according to the JPEX announcement, we know that the address where Zhong Peisheng received boxing rewards is 0x24D8Bdc58D3BA69Fd4598CC0Dc8763bf9bB5F543, and then Using public and free on-chain tools to check the source of funds, it can be clearly seen that the 390,000 USDT comes directly from user deposits, which means JPEX has misappropriated the customer's assets!"
JPEX partners Cai Xiaodong (Tong Kee) and Wu Kaiyi Priscillia attended the boxing event on behalf of JPEX earlier.
Shortly after BlockCast revealed that JPEX was suspected of misappropriating customer assets, it quickly aroused great repercussions in the crypto of Hong Kong and Taiwan. The crypto community is concerned about whether JPEX is involved in misappropriating customer assets and whether the JPEX platform has provided sufficient reserve certificates. (Proof of Reserve) has launched a heated discussion, and even dug up that JPEX has still not provided sufficient and effective proof of reserves. Users have no way of knowing whether the platform has sufficient funds prepared for users to withdraw funds.
The above-mentioned doubts were precisely cited by JPEX’s latest announcement on the 17th. JPEX emphasized in the announcement that “suffering unfair treatment” and a series of negative news caused the third-party market makers that the platform cooperates to temporarily lock funds and restrict The platform’s financial liquidity may lead to operating difficulties. But what is the relationship between the platform’s operating funds and user assets? Users deposit money into the trading platform for cryptocurrency trading. This is the user's investment behavior. Then the platform itself uses third-party market makers to stimulate liquidity. Why does this prevent users from withdrawing funds? Why is the capital liquidity of the JPEX platform "locked" by third-party market makers? Is this an official admission by JPEX that it failed to segregate customer assets from platform working capital and misappropriated customer assets? What is the risk management of the platform? Where can I see the Proof of Reserve of the JPEX platform? The above questions are exactly the concerns repeatedly raised by JPEX users. "When the media public has questioned JPEX's misappropriation of customer assets, these KOLs will say that others have bought the trolls," Chirstina said. These KOLs only promote a single platform, namely JPEX and its investment products, including JPC coins. "If People who raise questions in the group will be kicked out of the group by the group owner. I was too active in raising questions in other groups, and they found out. I have been kicked out. Only those who cater to them can stay."
In addition to promoting the JPEX platform in Hong Kong, Priscilla Ng, the owner of Coiner OTC in Hong Kong, also set foot in Taiwan this year to represent JPEX at the "Fist on" event hosted by JPEX.
Wu Kaiyi (Priscilla) once said through her IG that the media’s exposure of JPEX’s suspected misappropriation of customer assets was a “smear incident” and “very nonsense”, and because “it is obvious that JPEX’s entry into Taiwan is very strong, it has affected the status of other exchanges and suffered "Discredit". In addition to alluding to the media's failure to conduct due diligence, these remarks also mentioned that the Taiwan Exchange used the media to discredit JPEX. At this point, BlockCast specifically clarified that this platform has never been affected by any exchange. Or instructed to report on the JPEX platform. BlockCast adheres to its due responsibilities as a media and only discloses relevant suspicious matters after tracking and investigating the data on the chain to fulfill its media responsibilities and remind readers to pay attention to related risks.
In addition to trying to shift the focus to "whitewash" the JPEX platform, these KOLs mostly use "sending good news" to "brainwash" users, making them believe that the JPEX platform and its platform currency JPC are quite reliable and stable. In the past, Priscilla said through her IG that "JPC will host 15 more exchanges, and it is said that it will be Binance in 2024 at the latest" to make it clear to her followers that JPC will have great appreciation potential. BlockCast has inquired about this on Binance and said from reliable sources that there is no basis for the statement that JPC will be listed on Binance in 2024.
Chirstina said that in these KOL groups, many people know that JPEX is suspicious but are still willing to take high risks. About 30% of adults have this mentality. "To be honest, I am really greedy, because I knew it early. It’s a scam, but I didn’t withdraw money because I didn’t think it would explode so quickly. I hope BlockCast can help warn other readers.” “In fact, JPEX is a ponzi scheme. It claimed to be a Japanese exchange at first, but then changed its story. , and then there are overwhelming advertisements. I think what makes me most suspicious is the platform currency JPC, and there are so many KOLs singing good songs at the same time." Christina also mentioned that as far as she knows, the losses involved by JPEX users have exceeded tens of millions. Hong Kong dollars.
After JPEX was named by the Hong Kong Securities Regulatory Commission, various spokespersons, KOLs, and partners quickly cut off
On the day the Hong Kong Securities and Futures Commission issued the statement, those spokespersons, KOLs and partners who had been associated with JPEX and vigorously promoted JPEX were quickly cut off. In addition to expressing their "non-partner" status through their personal or company social media , and some KOLs even stated that they were also affected investors and did not receive any benefits. More partners, KOL, OTC and other parties are cutting quickly. Please read another report from BlockCast.
After the JPEX incident was revealed, Lin Zuo said in an interview with Hong Kong media that he had no cooperative relationship with the JPEX platform. (Image source: Telegram group)
JPEX partner Cai Xiaodong (Tong Kee), who represented JPEX at the "Fist" event held in Taiwan, quickly issued a post after the incident at JPEX. (Picture source: Dongji IG)
Loyal readers provided information to BlockCast that Chen Lingjiu, the spokesperson of JPEX in Taiwan, "issued a statement through his agent stating that cooperation with JPEX was terminated at the end of July, but on 8/20 he took his Yolocat members to visit the Asian blockchain "Building," readers said, Chen Lingjiu was caught and slapped in the face because he was obviously wrong in what he said.
Image source: provided by readers
Image source: provided by readers
Since many celebrities and KOLs have promoted JPEX in the past two years or more, in addition to appearing at offline events or on platforms, they also use their social media to help spread promotional messages. Obviously, , even if these "footprints" have been artificially deleted recently, they cannot stop the power of investors. Many of the contents have been screenshots and even recorded on film.
The Hong Kong police set up a dedicated hotline to handle reports from affected investors, but suspected trolls issued a message "dissuading them from leaving"
The JPEX incident has been developing for many days. The Hong Kong police have publicly stated to the public that they have received reports from citizens, and the Commercial Crime Investigation Bureau will follow up the incident and make an appeal. All complaints about JPEX can be reported to the police through electronic reporting. , the Commercial Crime Investigation Bureau will handle it together, and you can also report and inquire through the hotline set up by the police (852-28605012).
BlockCast received content from readers on the 17th. In a group, a member shared that "call the police (find) the Commercial Crime Investigation Bureau to open a File check. It was unfortunate that the D account was frozen and buried. The check was 3 ~Every account has been unfrozen for 5 to 7 years." This statement is suspected by some investors to be a "dissuasion" element. It is suspected that they want to use "your account is likely to be frozen due to reporting a crime" to persuade JPEX users not to go. Report the crime.
In view of the fact that the JPEX trading platform not only has Hong Kong users, but has also entered the Taiwan market in recent years. BlockCast has asked the Taiwan Bureau of Investigation about how investors can protect their property. According to the investigator’s reply, if investors suspect that they have mistakenly fallen into investment If you find a scam or your property has been misappropriated by criminals, you should report it to law enforcement as soon as possible.
Image source: provided by readers
Image source: provided by readers
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Disclaimer: This article is only to provide market information. All contents and opinions are for reference only. They do not constitute investment advice and do not represent the BlockCast. Investors should make their own decisions and transactions. The author and BlockCast will not be held responsible for any direct or indirect losses caused by investors' transactions.
