Joseph Lam (Lin Zuo), also known as “jolamchok” on Instagram, was reportedly detained by Hong Kong police for his ties to JPEX.
A Hong Kong-based social media influencer was purportedly arrested after their involvement in the liquidity crisis of the cryptocurrency exchange JPEX was uncovered.
South China Morning Post reports that Hong Kong police apprehended crypto influencer Joseph Lam (Lin Zuo), also known as “jolamchok” on Instagram, due to his association with JPEX. In addition, according to the report, the police invaded his office and seized boxes of evidence, including a plastic bag containing currency.
According to a local report, the Securities and Futures Commission of Hong Kong has recently issued a statement criticizing JPEX for aggressively promoting the platform’s services and products to the Hong Kong public via online personalities and over-the-counter money changers.
Another unconfirmed report indicates that Lin Zuo presented “schemes” to a chat group created for cryptocurrency investment. Miss Chen, one of the alleged victims, was reportedly persuaded to invest 100,000 Hong Kong dollars ($12,800) in cryptocurrency.
Joseph Lam did not respond promptly to our reporter’s request for confirmation or denial of the allegations. As stated in the report:
“He (Lin Zuo) from time to time claimed in the group that people kept looking for him to “pay money,” threatened that “the amount of money on these two days is five times the usual.‘”
On September 17, the influencer shared a news article stating that he “was not hit in the JPEX incident” with the caption, “Whatever doesn’t kill you makes you stronger.”
The occurrence occurred before Zuo and his attorneys visited the police to provide necessary information.
JPEX blamed regulators and “third-party market makers” for a liquidity crisis that resulted in the platform increasing withdrawal fees and suspending some operations. In a statement JPEX also stated:
“We promise to recover liquidity from third-party market makers as soon as possible and gradually adjust the withdrawal fees back to normal levels,”
The crypto industry’s capital outflows in August reached $55 billion, according to a recent report from crypto exchange Bitfinex.
With approximately $55 billion siphoned from crypto markets in the past month, capital outflows have affected more than just Bitcoin, but also a decline in stock prices, affected Ether , As well as stablecoin liquidity.
