Op-ed: JPEX – A crypto scandal that shakes Hong Kong’s reputation

Hong Kong, a global financial hub and a gateway to China, has been rocked by a massive crypto scandal involving JPEX. This Dubai-based cryptocurrency exchange allegedly defrauded thousands of investors of more than $160 million. The case has exposed the regulatory loopholes, the lack of investor protection in Hong Kong’s nascent crypto industry, and the risks of relying on social media influencers to promote unlicensed platforms.

JPEX, which stands for Japan Exchange, claimed to be the world’s first crypto exchange offering its users dividends. It also boasted of partnering with major institutions such as HSBC, Standard Chartered, and Alibaba. It lured investors with promises of high returns and low fees and used aggressive marketing strategies such as billboards, online ads, and influencer endorsements.