Hong Kong police arrested popular crypto influencer Joseph Lam, also known as Lin Zuo, following suspicions surrounding the liquidity crisis of the crypto exchange JPEX. Lam, better known by his Instagram username ‘jolamchok’, has become the focal point of an investigation into a financial debacle that has left many investors anxious and concerned.
Seizure of Evidence and Alleged Schemes
The arrest comes after a report from the South China Morning Post revealed that authorities had raided Lam's office, confiscating numerous boxes of evidence. Among the confiscated items was a plastic bag filled with banknotes, adding a further layer of mystery and intrigue to an already complex case.
Complicating matters is another unconfirmed account which suggests that Lam, using the JPEX platform, presented questionable "schemes" to a dedicated chat group for cryptocurrency enthusiasts. One such alleged victim, identified only as Miss Chen, claimed that she was persuaded to invest a substantial sum of $12,800 (equivalent to 100,000 Hong Kong dollars) in cryptocurrency due to Lam's persuasion.
The report quoted Lam as having stated in the group chat, “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"”.
In a move to seemingly defend his reputation amidst the growing controversy, Lam took to social media on September 17, sharing an article with his followers. The article alleged his innocence regarding the JPEX incident. With defiance, Lam captioned the post, “Whatever doesn’t kill you makes you stronger”.
JPEX's Troubles Continue
While the spotlight is currently on Lam, the crypto exchange JPEX has not been without its own share of turmoil. The exchange pinned the blame for its liquidity issues on regulators and "third-party market makers".
The adverse situation forced JPEX to increase withdrawal fees and even suspend certain operations. In an attempt to reassure its clientele, JPEX released a statement: “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 exchange stated that further details would be provided once negotiations conclude.