Joseph Lam (Lin Zuo), also known as ‘jolamchok’ on Instagram, was allegedly detained by Hong Kong authorities for his ties to the cryptocurrency exchange JPEX.
According to reports, a social media influencer located in Hong Kong has been detained as part of the probe into the liquidity problem at the cryptocurrency exchange JPEX.
According to the South China Morning Post, Joseph Lam (Lin Zuo), better known by his Instagram handle “jolamchok,” was detained by Hong Kong authorities for his ties to the JPEX cryptocurrency exchange. According to the story, the police also entered his workplace and took many boxes of evidence along with a plastic bag containing currency.
According to a local article, the Securities and Futures Commission of Hong Kong recently published a statement criticizing JPEX for using internet celebrities and over-the-counter money changers to promote the platform’s services and goods to the Hong Kong public.
Another rumor, this one not backed up by evidence, claims that Lin Zuo shared “schemes” with a bitcoin investing forum. Miss Chen is one of the people who was allegedly duped into investing $12,000 (100,000 Hong Kong dollars) in cryptocurrency.
Cointelegraph reached out to Joseph Lam for comment but did not hear back from him right enough either confirming or refuting the allegations. The report concludes:
“The gang, Lin Zuo alleged, was always on the lookout for him to “pay money,” and he would sometimes warn, “the amount of money on these two days is five times the usual.”
With the tagline “Whatever doesn’t kill you makes you stronger,” the influencer tweeted a news report on September 17 stating he “was not hit in the JPEX incident.”
This transpired before Zuo and his attorneys paid a visit to the police to deliver the essential detail. As a result of a liquidity issue, the platform has increased withdrawal costs and temporarily halted certain activities, which JPEX attributes on regulators and “third-party market makers.” “We promise to recover liquidity from third-party market makers as soon as possible and gradually adjust the withdrawal fees back to normal levels,” JPEX said in a statement, adding that specifics would be disclosed after the conclusion of discussions.
According to a study published by Bitfinex, the cryptocurrency market lost $55 billion in August. The cryptocurrency markets as a whole were impacted by the $55 billion in withdrawals over the previous month, not only Bitcoin BTC.
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