JPEX's suspected fraud case has been fermenting for more than a week, and it is still unknown who opened the company and who is behind it. However, from the background of the arrested person, plus the information obtained by the reporter's interview and investigation, we can analyze how this "shed" was built. The CSRC held another press conference on Monday (September 9), and said that it would announce the list of license-applying applications, from the CSRC's naming of JPEX as suspicious a year ago to a case involving 25.14 billion yuan today, what lessons have we learned from the JPEX incident?
The investigation of "Hong Kong 01" found that some public relations created news topics with the script of "young couples after 00 speculated to get rich and buy houses". JPEX also used the form of "refutation" to find intermediaries to use cash to place advertisements on some media. The JPEX program and website are handled by an outsourced software engineering company in Lai Chi Kok.
Cryptocurrency Investigative Report・Page|JPEX involved in fraud Lin Zuo, Chen Yi and other currency circle Internet celebrities were arrested
In March this year, PR sent a recording to reporters: "They said that after 3, they used to rely on their parents to pay the down payment for buying a house, and all relied on their father's shadow. Now this post-00s couple does not need to rely on their families at all, rely on themselves, or pay all in one lump sum and buy a floor. It's all about investing in cryptocurrencies, and the investment is successful, so there is money to buy a house."
Since 2021, JPEX has been overwhelmed with publicity, and by August last year, it issued its own platform coin JPC, which has skyrocketed and plummeted.
The script of this PR trick is that young couples invest in JPC and "earn" to the floor; Suddenly, there was an advertisement for real estate agencies, saying that the owner sold the house and invested in JPC. An inspirational story and a financial feature with the frenzy of the currency market appeared. However, this script did not appear in the "Hong Kong 01" news, and the source of the script cannot be traced now.
"I am not a rich second generation, my parents are both migrant workers, and they earn more than 3,<> yuan a month. Because I saved a sum of money myself, I played cryptocurrency, and I made money again." In March this year, at the sales site of Ho Man Tin's new real estate, a rich second generation wearing a famous brand, wearing bodyguards and claiming that a suitcase of cash was ready to buy a house, suddenly "accepted an interview" and told the story of his investment and money.
After receiving the news, "Hong Kong 01" did not follow the script, but followed up by means of investigation reports, and found that the account that uploaded the film had the same name as the company in which Chen Dingbang was the major shareholder. At that time, Chen Dingbang said that he did not know this person.
This kind of PR propaganda sometimes works. For example, the "East Building" that the police searched was opened by "East Ji" Cai Xiaodong. The character he created is unwilling to be a turf and lifeguard, so he invested in cryptocurrency, once lost a lot, and after seriously learning to invest, he became a young talent with a net worth of more than 100 million.
"Today, I am willing to shoulder this responsibility. All in JPC, that's it, thank you." Cai Xiaodong once asked the participants to invest in JPEX with all their wealth in the lecture. BUT AFTER JPEX WAS WARNED, HE HAS DELETED ALL SUCH VIDEOS.
The websites of these off-site money changers are no longer available in Hong Kong, and like JPEX's official website, you have to "climb over the wall" to use a VPN. The Police previously said there was reason to believe JPEX was a "scam" and notified the telecommunications provider through the Communications Authority to block the website.
In the company search of these OTC money changers, none of the documents could find a direct relationship with JPEX, some were directly held by "Internet celebrities", and some had shareholders and directors behind them. Cai Xiaodong's "Hong Coin" trademark holder is also a modeling agency owner. The modeling agency said it would not respond.
The "Web8 Asia Blockchain Exhibition & Seminar" held at the end of August this year, hosted by BlockDailyHK, was all attended by off-site changers playing JPEX. BlockDaily's website was also deleted after the JPEX accident.
The original list of guests at the seminar, including InvestHK officials, HKSTP executives and Legislative Council member Yau Tat-kan, was not present.
JPEX's first campaign was a giant advertisement at the MTR station, which clarified that it would no longer accept JPEX ads after June 2022, adding that it had alerted advertising agencies to strengthen monitoring.
The reporter looked for the media that had received JPEX advertisements, and some said that they used "boat boys" to place advertisements with "barge", and they paid in cash, and the name of the company could not be traced.
JPEX's website and app were developed by a company based in Lai Chi Kok. The software company's customers also include universities, government-funded public institutions, foreign chambers of commerce, record labels and more.
The software engineer who has been in charge of the JPEX project said that JPEX is an important customer of the company, and people in the same department are also responsible for developing the website of the off-market money changer. The reporter approached the company for information, but there was no reply by the deadline.
Another trick of JPEX to "build a shed" is to announce cooperation with listed companies, which is also a suspicious question named by the CSRC. These voluntary announcements of memorandums of understanding, the entry into force of the cooperation agreement, terminated in the shortest month, the so-called cooperation has not seen any results.
The latest is Synergy Communications, which announced its partnership with JPEX, and the stock price rose by up to 133% on the second day. After JPEX's accident, Coordinated Communications clarified that the so-called wholly-owned subsidiary JPEX was not JPEX involved in the fraud case, but had obtained JPEX's consent to use a "similar" name for sale.
In the past few days, the police have arrested a total of 11 people on suspicion of conspiracy to defraud, involving more than 14.9 billion yuan.
Those arrested included "Internet celebrities" Lin Zuo and Chen Yi, singer dR.X Huang Haobang, "Zhu Gongzi" Chu Ka-fai, and JPEX employees. Two of them, related to the "coin master" Huang Junjie, including the "assistant" Mo Junting, who was arrested together in the 2019 mining machine fraud case; and Deng Lixun, who was arrested together with the Sham Shui Po money throwing case in 2018.
They are all listed as defendants along with Yuan Shao in some civil cases. The mining machine fraud case was not actually closed, and the police said that it was still under investigation.
"50% sell kidneys to increase positions, 60% All in to increase positions, 70% even wives, parents, sisters and sisters, borrow all to increase positions." The police have not explained whether he played a role in the JPEX case, and he has deleted all videos of playing JPEX.
Zhang Zhilin, who has been the spokesperson of JPEX, Zhuang Gongmin, an artist who has a publicity, and Chen Dingbang, a feng shui master, have all gone to the police station to assist in the investigation. The news indicates that the police will take corresponding action based on the available evidence, the level of involvement of the relevant persons and their role in the case, including but not limited to arrest.
There are still many questions about the whole JPEX case. In July last year, the SFC added JPEX to its list of "unlicensed companies and suspicious websites"
However, it said that it could not be regulated until the amendments to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance came into effect on June 6 this year. But if you feel suspicious in the past year, why not refer it to the police "if you see it"?
On September 9, JPEX was warned by name, and the CSRC sent a letter to a number of Internet celebrities, and the next day referred it to the police for investigation. Five days after the arrest operation was launched by the Commercial Crime Bureau, some changers could not find the person in charge, and the police wanted to break down the door.
"Our opinion at the SFC is that we don't think it's appropriate to make this list public."
Last Tuesday (9 September), the SFC refused to disclose the list of applicants for a "virtual asset trading platform license". According to the reporter's statistics, at least 19 exchanges claimed to be applying for a Hong Kong license, using words such as "application", "intended application", "prologue", "formal attack" and so on.
The reporter inquired with the CSRC one by one last week, but the CSRC refused to respond, until today (25th) held a press conference, and said that it would be announced. "In response to public requests, we have decided to publish the list of applicants, and four of the four applicants are currently applying for licences with the SFC: HKBitX, Hong Kong BGE, HKVAX and Victory."
JPEX did not restrain after being investigated, and continued to fight back on the official website, and launched a "stakeholder dividend" referendum, allowing users to turn the assets placed in JPEX into "investments", and only after two years can they get their principal back. However, some users found that the referendum was suspected of fraud, and after choosing not to accept it, they would be reincarnated indefinitely.
JPEX claims to continue operating, but the Australian company has applied for deregistration, claiming that the company's assets are less than A$1,000, or about HK$5000,<>.
According to on-chain data analysis, JPEX has an abnormal outflow of about 1 million yuan, whether law enforcement agencies can pursue funds, and non-arrest operations, "Hong Kong 7" will continue to pay attention.
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