HK$1.3 billion JPEX scandal shows importance of regulating virtual assets, Hong Kong’s John Lee says, as defiant operator debuts new dividend plan
- Malaysian actress Jacquelin Ch’ng, who previously filmed a promotional video for JPEX, questioned by police; film star Julian Cheung brought in earlier
- JPEX hits outs at market regulator after debuting new dividend scheme for investors the previous evening
The alleged HK$1.3 billion (US$166 million) fraud centred on the JPEX cryptocurrency platform has underscored the importance of a regulatory framework for virtual assets, Hong Kong’s leader has said, while the operator remains defiant, debuting a new dividend plan for investors.
“This incident shows the importance of investing in licensed and regulated virtual asset platforms. Otherwise, it will be difficult for investors to be protected,” Lee told a banquet held by the financial sector to mark National Day on October 1.
He said government policy aimed to protect investors with an effective regulatory regime, release public and transparent information, and promote investor education.
But in a strongly worded statement on Thursday, JPEX hit back at the market regulator, the Securities and Futures Commission (SFC), after launching a new dividend scheme for investors the previous evening.
It said its team had never had a fixed work location with members in various regions worldwide, as it saw the structure of physical companies as an obstacle to the global promotion of cryptocurrencies.