Hong Kong Telecoms Block JPEX in Connection with $166M Fraud

Hong Kong Police have instructed telecom providers to block user access to JPEX exchange in a $116 million fraud allegation.

401 error code for JPEX in a network base.
Created by Kornelija Poderskytė from DailyCoin
  • JPEX exchange has landed into deeper troubles.
  • Hong Kong telecom companies have been instructed to block user access to the exchange.
  • The exchange is caught in between a multimillion-fraud allegation.

Embattled crypto exchange JPEX has found itself in the middle of one of Hong Kong’s largest financial fraud cases that has attracted the wrath of multiple law enforcement agencies.

On September 21, local media outlets reported that Hong Kong police had demanded leading telecom service providers in the special administrative region of China to block access to JPEX, even as the exchange flouted a revised “dividend plan” for investors amidst a multimillion-fraud allegation.

Access Block Amidst Fraud Allegations

The Commercial Crime Investigation Bureau unit of the Hong Kong Police has taken further action on the JPEX crypto exchange by instructing telecom operators SmarTone, CSL mobile, and Three, among others, to block user access to its website and mobile app.


The development comes after the Securities and Futures Commission (SFC) stated on September 20 that its findings on the JPEX exchange led to suspicion of fraud, prompting the commission to refer the case to the police.

Hong Kong Police have made 11 arrests and searched various physical crypto stores, including Branches of OTC stores Coingaroo and Coiner, in connection to a $166 million scandal between JPEX and investors.

Some of the 2,086 victims who filed complaints claimed they were unable to withdraw their digital assets from the platform after investing in financial products that were touted to yield over 20% in returns annually.


In response to the recent developments on the police side and a second warning from the SFC, JPEX launched a new initiative.

The “DAO Stakeholders Dividend Plan”

JPEX has adopted “Bitfinex’s past successful handling methods as a reference” and proposed a new dividend plan to distribute 49% of its DAO Stakeholder dividends, worth approximately 400,000,000 USDT for subscription and conversion.

The exchange will then allow users to convert their assets currently held on the platform to DAO Stakeholder dividends at a 1:1 ratio.

Read more about the suspension of trading activities by JPEX:
JPEX Exchange Shuts Down Operations as SFC Probe Escalates

Hong Kong’s SFC is vigilant on unregulated crypto exchanges. Read more:
Hong Kong SFC Cautions Against Unlicensed Crypto Exchanges

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.