Victims of Hong Kong JPEX cryptocurrency say scandal exposes ‘loopholes’ in regulatory regime: ‘I have cried for many sleepless nights’
- Victims say they were influenced by army of celebrities, blanket advertising and cryptocurrency investing education centres
- They call on authorities to better regulate industry, while lawmaker Johnny Ng reveals they are considering suing to get money back
A group of victims of Hong Kong’s biggest alleged financial fraud have called on the city’s investment regulator to supervise not only unlicensed cryptocurrency platforms, but also over-the-counter (OTC) virtual asset money changers, industry education centres and related advertising.
“The JPEX incident has exposed many loopholes in the city’s regulation of cryptocurrency trading, including the lack of supervision of OTC shops, cryptocurrency education centres and relevant advertising at public transport facilities to mislead investors,” Penny* said.
“There has also been a lack of a comprehensive regulation system to trace and protect investors’ virtual assets. We call on authorities to set up a task force to extend their regulation of other related cryptocurrency agencies and better protect investors’ assets.”
The JPEX cryptocurrency platform is at the centre of a growing HK$1.57 billion (US$200.7 million) financial scandal involving 2,569 victims.
