High returns behind the blood money? Hong Kong SFC Warns of Six JPEX Scams

The "licensed platform" bombarded by social media is a scam?

Recently, the Securities and Futures Commission (SFC) of Hong Kong has made some rare announcements."Warning Statement on Unregulated Virtual Asset Trading PlatformsIn the past year, JPEX, a cross-border platform, was named as allegedly laying financial traps for Hong Kong investors through false publicity, unauthorized products and online promotions.

What is most shocking is that JPEX claims to be "licensed and recognized" in its website and advertisements, even emphasizing that it is "headquartered in Dubai and regulated by local regulators". However, the SFC directly exposed the lies:JPEX Group entities have never been licensed in Hong Kong, nor are they on the legal list of the Dubai Virtual Assets Regulatory Authority.The so-called "cross-border regulatory advantage" is in fact an elaborate fraud. The so-called "cross-border regulatory advantage" is in fact an elaborate deception.

II. SFC reveals six suspicious operations of JPEX

According to the SFC's investigation, there were six major red flags in JPEX's operations:

False regulatory endorsement
The "overseas registration" is used to confuse the public, but in reality, it has not obtained any legal trading license in any jurisdiction, and has even been included in the "List of Unlicensed Companies and Suspicious Websites" in Hong Kong for as long as one year.
Super High Return Bait
Launched "Callable Financial Products" with annualized yield as high as 19%-21%, far exceeding the reasonable level of the market. Among the licensed platforms in Hong Kong, this type of productExplicitly prohibitedThis is because by its very nature it involves high-risk pooling operations.
Malicious freezing of assets
A number of retail traders complained that they were unable to withdraw their funds from JPEX, and that their account balances had been tampered with for no apparent reason, suspected to be back-end data manipulation.
False Business Collaboration
It claimed to have cooperated with and received investment from a Hong Kong listed company, but in fact the cooperation had been terminated a long time ago and the listed company had never injected any capital into the company.
Internet celebrities set up traps by exchanging stores off-site.
Through social media network and off-site swap stores, JPEX disseminated false information such as "JPEX is applying for a license in Hong Kong" to mislead investors' trust.
Illegal provision of "deposit proceeds" of virtual assets
Attracting investments under the guise of "savings", "revenue sharing", etc. Such businesses are not allowed under the SFC regime.total banThe reason is that it is so easy to create Ponzi schemes.

Lesson in blood and tears: why is it necessary to recognize the "list of licensed platforms"?

SFC emphasized thatThe "List of Licensed Virtual Asset Trading Platforms" is the only safety guide for Hong Kong investors. As of April 2025, only 10 platforms in Hong Kong have been formally licensed, including OSL Exchange, HashKey Exchange, etc. (see table below).

▍香港持牌虛擬資產交易平台（節選）

Central Number	Platform name	Licensing Date
BPJ213	OSL Exchange	2020/12/15
BPL992	HashKey Exchange	2022/11/09
BUY578	PantherTrade	2025/01/27

Key Tips::

Any platform that is not on the "licensed list" is unlicensed.
Some platforms appear on the "applicant list" but the SFC explicitly warns against them:Application does not mean complianceIn addition, most of the organizations on the list have had their applications returned or withdrawn due to incomplete information or suspicion of non-compliance (e.g. Bybit, OKX, etc.).

What is the cost of trusting Netflix? The maximum penalty is 10 years' imprisonment!

The SFC has issued warnings to the netizens and OTC exchanges involved to stop promoting JPEX. under the AML Ordinance:

Dissemination of false information to induce investmentThe maximum penalty is imprisonment for seven years and a fine of HK$1 million.
Fraudulent trading operations: The maximum penalty is 10 years' imprisonment and a fine of HK$10 million.

More dangerously.Investors are likely to lose their money if an unlicensed platform closes down or is hacked.The victims were almost unable to seek redress through legal channels. Since JPEX is headquartered overseas, it is difficult for the Hong Kong judiciary to pursue claims across the border, making it almost impossible for victims to seek compensation through legal channels.

Three steps to self-help: avoiding the next JPEX

Checking the "List of Licensees"
Before investing, be sure toSFC websiteVerify the legitimacy of the platform and be wary of ambiguous language such as "applying for a license".
Resist the temptation of high returns
The virtual asset market is highly volatile, and any product that promises a "guaranteed profit" or an annualized return of more than 10% is likely to be a scam.
Stay away from Netflix and off-site swaps.
Social media promotions are mostly paid advertisements, online celebrities do not have professional qualifications, and there is a lack of capital protection mechanism for off-site exchange stores.

Conclusion: The regulatory sword has been sheathed, your choice determines the safety of your assets.

The JPEX incident has once again exposed the fatal risk of unlicensed platforms. As an international financial center, Hong Kong is filtering out the market's cancerous growth through a strict licensing system, but investors' "greed" and "luck" mentality are the final pushers of the scam's success. Remember:Legal licenses are the first line of defense for assets, while sobriety is the ultimate talisman..

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