Crypto influencer arrested in Hong Kong for JPEX association

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A Hong Kong-based social media influencer has been reportedly arrested after investigations across the liquidity disaster of the crypto trade JPEX traced again their involvement.

Hong Kong police reportedly arrested crypto influencer Joseph Lam (Lin Zuo), who goes by the username ‘jolamchok’ on Instagram, for his affiliation with JPEX, in line with a South China Morning Submit report. As well as, the report means that the police raided his workplace and seized containers of proof, together with a plastic bag containing banknotes.

In keeping with a neighborhood report, the Securities and Futures Fee of Hong Kong lately issued an announcement blaming JPEX for actively selling the platform’s providers and merchandise to the Hong Kong public by on-line celebrities and over-the-counter cash changers.

One other unconfirmed report means that Lin Zuo offered “schemes” to a chat group created for cryptocurrency funding. One of many alleged victims, Miss Chen, reportedly was satisfied to take a position $12,800 (100,000 Hong Kong {dollars}) in crypto.

Nevertheless, Joseph Lam didn’t instantly reply to Cointelegraph’s request for remark confirming or denying the accusations. In keeping with the report:

“He (Lin Zuo) occasionally claimed within the group that individuals stored in search of him to “pay cash”, threatened that “the sum of money on these two days is 5 instances the standard”.”

On Sept. 17, the influencer shared a information article claiming he “was not hit within the JPEX incident” as he posted a caption saying “No matter doesn’t kill you makes you stronger.”

Lin Zuo shared a information article claiming that he was not impacted by JPEX investigations. Supply: Instagram

The event preceded Zuo’s go to to the police alongside along with his attorneys to offer obligatory info.

Lin Zuo visited Hong Kong police in relation to JPEX investigation. Supply: Instagram

JPEX blamed regulators and “third-party market makers” for a liquidity disaster that has seen the platform hike withdrawal fees and suspend certain operations. “We promise to recuperate liquidity from third-party market makers as quickly as attainable and step by step modify the withdrawal charges again to regular ranges,” JPEX mentioned in an announcement, noting the main points will likely be introduced after negotiations conclude.

Associated: Binance CEO brushes off negativity, assures firm has ‘no liquidity issues’

A latest report from crypto trade Bitfinex revealed that the capital outflows within the crypto trade reached $55 billion in August.

Combination market realized worth internet place change. Supply: Glassnode/Bitfinex

With about $55 billion being drained from the crypto markets over the previous month, capital outflows didn’t simply have an effect on Bitcoin (BTC) but additionally impacted Ether (ETH) and stablecoin liquidity.

Journal: How to protect your crypto in a volatile market — Bitcoin OGs and experts weigh in