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Crypto Influencer Arrested in Hong Kong Over JPEX AssociationHong Kong police have taken prominent social media influencer and former lawyer Joseph Lam into custody. Known as “Jolamchok” on Instagram, Lam has been arrested due to his connection with the troubled cryptocurrency exchange, JPEX.According to a report from the South China Morning Post (SCMP) on Monday, law enforcement officials conducted a search of his office, where they seized various items of potential evidence, including a plastic bag containing banknotes.Photo by niu niu on UnsplashCelebrity promotionThe Hong Kong regulator, the Securities and Futures Commission (SFC), recently issued a warning squarely pointing fingers at JPEX for actively enlisting online celebrities like Joseph Lam and over-the-counter (OTC) money changers to promote the platform’s services and products to the Hong Kong public. Hong Kong police are understood to have searched the offices of local OTC exchange service Coingaroo. That action is suspected to be related to the issues that have befallen JPEX.An unverified report suggests that Lam, who is also known as Lin Zuo, may have presented questionable investment “schemes” to a cryptocurrency investment chat group. One of the reported victims was allegedly persuaded to invest 100,000 Hong Kong dollars (approximately $12,800) in cryptocurrencies.In one instance, Lam made claims within the group, stating that people were relentlessly pursuing him for payments and that the amount of money involved was five times higher than usual.“Whatever doesn’t kill you makes you stronger”On September 17, the day before his arrest, Lam shared a news article on his Instagram account, suggesting that he had not been negatively affected by the JPEX investigations. The caption read, “Whatever doesn’t kill you makes you stronger.”Following this development, Lam visited the police alongside his legal representatives to provide the necessary information regarding his involvement with JPEX. In a related development, another crypto influencer, Chen Yi, is understood to have been arrested. Yi is suspected of conspiracy to commit fraud.Liquidity crisisJPEX has publicly attributed its liquidity crisis to regulatory pressures and “third-party market makers.” In response, the exchange increased withdrawal fees and suspended certain operations. They have, however, promised to restore liquidity from third-party market makers promptly and gradually return withdrawal fees to normal levels, with details to follow after negotiations.JPEX maintains that it was being treated unfairly. The exchange also said that it would freeze new trades while existing trades would continue to be active until completion.This arrest and the ongoing issues surrounding JPEX come amid wider concerns in the cryptocurrency sector. A recent report from Bitfinex indicated that capital outflows from the crypto markets amounted to a staggering $55 billion in August alone. This substantial outflow has not only impacted Bitcoin but has also affected the liquidity of Ether and stablecoins, underlining the broader challenges faced by the crypto sector.As the investigation into Joseph Lam’s involvement with JPEX continues, it remains to be seen how this development will impact the ongoing troubles facing the cryptocurrency exchange and the broader crypto ecosystem in Hong Kong and beyond.

CoinGecko expands data offering through Zash acquisitionCoinGecko, the Malaysian crypto data aggregator, has intensified its focus on the non-fungible token (NFT) market through the recent acquisition of London-headquartered Zash. The move forms part of CoinGecko’s initiative to enhance its API offering by providing comprehensive data on digital collectibles.Photo by Andrey Metelev on UnsplashSolving for crypto data fragmentationIn a statement published to its website on Wednesday, CoinGecko provided further details on its acquisition of the enterprise-grade NFT and blockchain analytics company. Separately CoinGecko Co-Founder Bobby Ong told Tech in Asia that the crypto data sector is fragmented. As a consequence, it leads to inefficiency as market participants are forced to navigate multiple crypto data APIs. It’s in an effort to solve that issue that Ong and CoinGecko have moved to acquire Zash.Zash Co-Founder and CEO Parit Patel expressed optimism about the evolving nature of NFTs and their potential to unlock new use cases globally, creating value for both companies and consumers. The company plans to introduce new services derived from the acquisition by the second quarter of 2024.Enriched data offeringIn its own statement, CoinGecko emphasized its commitment to offering more NFT-related metrics. The acquisition aims to enrich CoinGecko’s data offerings with information such as metadata, historical trades and lending data related to NFTs. The specific financial details of the deal were not disclosed.With the integration of Zash, users can expect access to a broader range of data across multiple blockchain networks, including Ethereum, Polygon, BNB Chain (formerly Binance Smart Chain), Bitcoin Ordinals and Solana. The extended services will cover NFT lending information indexing various marketplaces, such as Blend, X2Y2 and NFTfi.In reflecting on the acquisition, CoinGecko Co-Founder TM Lee considered the move in terms of the ongoing process of asset tokenization. Taking to the X platform, Lee wrote:“Any asset that can be tokenized, will be tokenized. Like tokens, NFT is a core primitive to the crypto economy stack. We’ve been building http://coingecko.com/nft earlier even in the bear market and I’m excited on possibilities within the NFT industry with @zash_api joining us!”Monitoring wash tradingOne notable feature introduced through Zash is the ability for users to monitor wash trading, an illegal form of market manipulation that gives the false impression of market activity. CoinGecko clarified that this feature would be available for “major collections” minted on Ethereum.Wash trading, involving the simultaneous buying and selling of assets, has been associated with the NFT bubble of 2022. Blockchain forensic firm Chainalysis reported that over 100 profitable wash traders collectively earned nearly $9 million from this activity. However, it noted that the majority of NFT wash traders have been unprofitable, resulting in losses exceeding $416,984 from more than 150 wash trades.While the NFT market has faced challenges, with total sales currently at $80.8 million, significantly lower than the peak in August 2021 when daily sales exceeded $2 billion, CoinGecko’s strategic move positions the company to provide users with enhanced tools for assessing and ranking their cryptocurrency holdings. Established in 2014, CoinGecko operates as a platform offering comprehensive data and information on digital currencies, contributing to the quantitative evaluation of cryptocurrency portfolios.

Accused of one of the world's largest cryptocurrency scams, Andreas Szakacs, a Swedish national who became a Turkish citizen under the name Emre Avcı, was detained in Istanbul. The alleged international fraud scheme, led by Szakacs, began in 2019 under the guise of OmegaPro, a company dealing in forex and cryptocurrency trading. OmegaPro claimed to generate significant profits for its investors through complex financial algorithms and high-risk leveraged trading. The company, registered in opaque jurisdictions like Saint Vincent and the Grenadines and headquartered in Dubai, promised returns as high as 300% within 16 months, attracting investors from across the globe. High-profile endorsements and lavish eventsTo bolster credibility, Szakacs and his partners, including well-known figures in the finance and crypto sectors like Dilawar Singh and Mike Sims, organized extravagant events. These included the OmegaPro Legends Cup, a football tournament featuring former stars like Ronaldinho, Kaka and Iker Casillas, who were branded as OmegaPro ambassadors. The company also sponsored car races and held opulent conferences in luxury hotels, where gifts and prizes were distributed to participants, further enticing new investors. OmegaPro's operations spanned multiple continents, with representatives in countries such as Colombia, Mexico, the UK and Nigeria. Over time, the company claimed to have attracted 1.5 million investors. However, in late 2022, as withdrawals were suddenly halted, suspicions grew. By July 2023, the company had shut down, leaving an estimated three million investors defrauded and $4 billion unaccounted for.Photo by Xiaoyi Huang on UnsplashAs OmegaPro collapsed, investors from around the world began filing complaints. In France alone, over 1,500 victims have initiated a class-action lawsuit. Similar legal actions have been reported in countries including Mexico, Congo and Myanmar. Despite multiple investigations, the whereabouts of Szakacs and his partners remained unknown—until recently. A tip-off leads to arrest in IstanbulThe breakthrough came on June 28, when an anonymous informant tipped off Turkish authorities about Szakacs' presence in a luxury villa in Istanbul's Acarkent neighborhood. Following an investigation, the Istanbul Gendarmerie identified 18 complainants connected to OmegaPro. On July 9, Szakacs was arrested in a raid on the villa, where authorities found 32 cold wallets containing cryptocurrencies, along with extensive documentation related to OmegaPro’s operations. During questioning, Szakacs denied all allegations, claiming that OmegaPro was a legitimate business that went bankrupt in late 2022, resulting in significant losses for him and his partners. He also refused to provide access to the cold wallets and the encrypted data on his devices. Despite his defense, Szakacs was charged with fraud using information systems and detained by the Beykoz Criminal Court of Peace on July 10. Ongoing legal battles and future implicationsAs the investigation continues, authorities are scrutinizing Szakacs' digital transactions, which reportedly involve $160 million in movements over a single month. His legal team argues that investors knowingly took on risks in the forex market, but the sheer scale of the losses—especially the $103 million claimed by a Dutch complainant representing 3,000 victims—has intensified the case. The outcome of this case could set a precedent for how international crypto-related fraud is handled, particularly in an era where digital currencies and high-risk investments are increasingly intertwined.