Crypto Platform Risk Checker
Platform Risk Assessment
How to Interpret Results
Based on JPEX case study, platforms with high interest rates, unlicensed status, and no reserve verification are likely fraudulent. Remember: no legitimate platform offers 20% monthly returns.
- Interest rates above 10% annually
- No regulatory licensing
- Unverifiable reserves
- Reliance on Telegram support
JPEX wasn’t just another crypto exchange. It promised high returns, AI-driven arbitrage, and interest rates that sounded too good to be true-and for thousands of users, they were. By 2023, what started as a flashy crypto platform turned into Hong Kong’s largest-ever alleged cryptocurrency fraud, leaving over HK$1.6 billion in losses and more than 2,600 victims. This isn’t a review of features or user interface. This is a hard look at what happened, why it happened, and what it means for anyone still considering unregulated crypto platforms.
What JPEX Claimed to Offer
JPEX marketed itself as a cutting-edge crypto asset platform with three main draws: high-leverage trading up to 300x, interest-earning accounts on crypto deposits, and an AI system called IAIA that supposedly made automatic profits by exploiting price gaps between exchanges. Users were told they could earn up to 20% monthly returns just by holding crypto on the platform. No other major exchange offered anything close. Binance, OKX, and Bybit might give you 5% annually on stablecoins, but JPEX promised double that every month. That’s not innovation-it’s a red flag waving in a hurricane.The platform also claimed to have over 8,889 BTC in reserves, backed by more than 100 cryptocurrencies, including $400 million in unlocked JPC tokens. They even released a "Proof of Reserves" certificate in late 2022. But here’s the catch: they never let users verify it on-chain. No public blockchain addresses. No third-party audit. Just a PDF with numbers. When asked, they said they were "still talking to auditors." That’s not transparency. That’s stalling.
How JPEX Differed From Legitimate Exchanges
Compare JPEX to any major exchange: Binance, Coinbase, OKX, Bybit, or Upbit. These platforms are licensed in multiple jurisdictions. They publish regular audits. They have customer support teams that answer emails and calls. They comply with KYC and AML rules. Their trading volumes are public-Binance clears over HK$220 billion in 24 hours. JPEX had none of that.JPEX operated under a shell company called WEB3.0 Technical Support Limited. No physical office. No registered legal entity in Hong Kong. No license from the Securities and Futures Commission (SFC). The SFC publicly warned users in September 2023 that JPEX was unlicensed. By then, it was already too late for many. The platform had been running ads with influencers, celebrities, and even fake "official" government endorsements. People believed it because it looked real. It looked like the real thing.
The Collapse: How Users Lost Everything
The crash didn’t come with a bang-it came with silence. In September 2023, JPEX suddenly halted withdrawals. Then the website went down. Then the app stopped working. Users woke up to find their funds locked, their accounts frozen, and customer service gone. No emails returned. No replies on Telegram. Just empty servers.By November 2023, the Hong Kong Police had opened a criminal investigation. Over 2,600 people reported losses. The total? Around HK$1.6 billion. That’s over $200 million USD. One victim, Chan Wing Yan, deposited USDT into JPEX only to find it transferred to unknown wallets. In October 2024, the Hong Kong District Court ruled in her favor, recognizing cryptocurrency as property that can be held in trust. It was a landmark decision-but the money? Still gone.
Police arrested 72 people connected to JPEX. They froze HK$228 million in assets-mostly luxury cars, cash, and real estate. But that’s less than 15% of what was stolen. The rest? Likely moved offshore, converted to crypto, or vanished into dark pools. The legal process will drag on for years. Most victims will never see their money back.
Why People Fell for It
You might wonder: how did so many smart people get tricked? The answer is simple: greed and false legitimacy.JPEX didn’t come out of nowhere. It copied the look and feel of top exchanges. Their website was clean. Their app was polished. They hired influencers with thousands of followers to post videos saying, "I’m earning 15% a month on JPEX-why aren’t you?" They even ran ads during Hong Kong’s biggest sports events. People saw familiar logos, trusted faces, and promises of easy money. They didn’t check if JPEX was licensed. They didn’t dig into the team. They didn’t ask why no one else offered 20% monthly interest.
It’s the same trap that caught people with TerraUSD, FTX, and Celsius. When returns seem too good to be true, they usually are. JPEX wasn’t trading crypto-it was running a Ponzi. New deposits paid old users. Until there weren’t enough new deposits. Then the lights went out.
The Legal Fallout and What It Means
The JPEX scandal forced Hong Kong to act. Before this, the city was trying to become Asia’s crypto hub. But JPEX exposed a dangerous gap: unlicensed platforms could operate openly for years without consequences. After the collapse, the SFC cracked down hard. They started publishing lists of unlicensed platforms daily. They demanded all exchanges apply for licenses or shut down.The court’s ruling that crypto is "property" under trust law was huge. It means victims can now sue platforms for theft-not just breach of contract. It opens the door for future cases. But it doesn’t bring back money. It doesn’t fix the system. It just gives victims a legal path that’s slow, expensive, and uncertain.
Academics from Hong Kong Polytechnic University and the University of Hong Kong published a 2024 study calling JPEX a "test case" for the city’s new crypto rules. Their conclusion? The rules are better now-but still not enough. DeFi, DAOs, and private wallet platforms still operate in the shadows. JPEX was just the first big crack in the wall.
What You Should Do Now
If you’re thinking of using a new crypto exchange, ask yourself these questions:- Is it licensed by a known regulator like the SFC, FCA, or SEC?
- Can I verify its reserves on the blockchain?
- Are there real customer support contacts-not just a Telegram bot?
- Do the returns sound realistic? (Hint: anything over 10% annually is suspicious.)
- Has the platform been flagged by any government agency?
Stick to exchanges with a long track record. Use platforms that publish third-party audits. Never put more money into crypto than you can afford to lose. And if someone tells you they’re making 20% a month on a platform you’ve never heard of? Walk away.
Final Reality Check
JPEX didn’t fail because of bad tech. It failed because it was built on lies. No AI system can consistently make 300x leveraged trades without massive risk. No platform can pay 20% monthly interest without stealing from new users. The technology was just a cover. The real product? Your money.The lesson isn’t that crypto is dangerous. It’s that unregulated platforms are. The market will always have scams. But you don’t have to be the next victim. Do your homework. Check licenses. Verify reserves. Trust nothing that sounds too good to be true. Because in crypto, the only thing more dangerous than losing money is believing you’re immune to loss.
Is JPEX still operating?
No, JPEX is no longer operating. The platform shut down in September 2023 after Hong Kong authorities declared it unlicensed and launched a criminal investigation. Its website and apps were taken offline, and withdrawals were halted. As of 2025, the platform remains inactive, and its operators are facing ongoing legal proceedings.
Was JPEX a legitimate crypto exchange?
No, JPEX was never a legitimate exchange. It operated without a license from Hong Kong’s Securities and Futures Commission (SFC), which explicitly warned users about it in September 2023. Unlike regulated exchanges like Binance or Coinbase, JPEX provided no proof of reserves, no third-party audits, and no legal accountability. Its operations were classified as fraudulent by Hong Kong police.
How much money did people lose in the JPEX scandal?
Over 2,600 victims reported losses totaling approximately HK$1.6 billion (around $205 million USD) as of April 2024. Hong Kong police froze HK$228 million in assets, but most of the stolen funds remain untraceable. The recovery rate is expected to be very low, with many victims unlikely to see any money returned.
Can I get my money back from JPEX?
It’s highly unlikely. While a Hong Kong court ruled in October 2024 that cryptocurrency can be held in trust-allowing victims to sue for theft-the actual recovery of funds has been minimal. Only HK$228 million of the HK$1.6 billion lost has been frozen, and most of the stolen assets were moved offshore. Legal cases are ongoing, but recovery is slow and uncertain.
What should I look for in a safe crypto exchange?
Choose exchanges that are licensed by reputable regulators like the SFC (Hong Kong), FCA (UK), or SEC (US). Look for platforms that publish regular, third-party proof of reserves on the blockchain. Avoid any platform offering unusually high returns (over 10% annually). Check for active customer support, transparent team information, and a long operating history. Never trust a platform that pressures you to deposit quickly or hides its legal status.
Are there any safe alternatives to JPEX?
Yes. Major regulated exchanges like Binance, Coinbase, OKX, Bybit, and Kraken operate under strict compliance frameworks and are licensed in multiple jurisdictions. They offer lower but realistic interest rates (typically 2-8% on stablecoins), transparent audits, and customer support. While no exchange is 100% risk-free, these platforms have proven track records and regulatory oversight that JPEX never had.
Stephanie Tolson
November 6, 2025 AT 20:17People keep forgetting that crypto isn’t a get-rich-quick scheme-it’s a high-risk experiment with no safety net. JPEX didn’t trick smart people; it preyed on the ones who stopped asking questions because the returns looked easy. If you’re not checking licenses, audits, and reserve proofs, you’re not investing-you’re gambling with your life savings.
And yes, the court ruling that crypto is property matters. But legal victories don’t pay rent. The real lesson? Never let greed silence your skepticism.
Stick to regulated platforms. Even if you earn less, you sleep better.
And if someone says ‘20% monthly’? Block them. Then report them.
Nitesh Bandgar
November 6, 2025 AT 23:39OH MY GOD. I can’t believe people actually believed this. JPEX was like a TikTok influencer selling ‘miracle weight loss pills’-except instead of sugar, it was crypto, and instead of a 30-day guarantee, it was ‘your money is gone forever.’
And the worst part? The influencers who promoted it? They KNEW. They got paid in JPC tokens. Now they’re probably sipping margaritas in Bali while families in Hong Kong are crying over bank statements.
THIS ISN’T A SCAM. THIS IS A CRIME. AND THE SYSTEM LET IT HAPPEN BECAUSE NO ONE WANTED TO BE THE ONE TO SAY ‘NO’.
Someone needs to drag these fraudsters into the light. Not just arrest them-EXPOSE THEM. EVERY. SINGLE. ONE.
Kathy Ruff
November 7, 2025 AT 07:06One of the most chilling things about JPEX isn’t the money lost-it’s how normal it looked. Clean UI. Professional videos. Real-looking testimonials. It didn’t scream ‘scam.’ It whispered ‘opportunity.’
That’s the new danger. Scams aren’t flashy anymore. They’re polished. They mimic the real thing so well that even experienced users get fooled.
Always verify. Always cross-check. Always assume the worst until proven otherwise. The market rewards caution, not courage.
karan thakur
November 9, 2025 AT 04:26This is all part of the globalist elite’s plan to destabilize traditional finance. JPEX was a controlled demolition. The SFC didn’t act fast enough because they were complicit. The ‘2,600 victims’? Most of them were planted. The ‘HK$1.6 billion lost’? Fabricated to justify more surveillance and control over digital assets.
They want you to fear unregulated platforms so you’ll beg for more regulation-and then they’ll take your keys anyway.
Don’t fall for the narrative. The real scam is the system that lets them say ‘we warned you’ after the fact.
Evan Koehne
November 9, 2025 AT 17:35So let me get this straight. You’re telling me people lost $200 million because they trusted a platform that promised 20% monthly returns… and nobody thought to Google ‘JPEX scam’?
Because I typed that into Google and the first result was a Reddit thread from 2022 titled ‘Is JPEX a Ponzi?’ with 12,000 upvotes.
These people didn’t get scammed by JPEX.
They got scammed by their own arrogance.
Also, AI arbitrage? Please. The AI was probably just a script that said ‘buy low, sell high’ and then got confused when the price went to zero.
Vipul dhingra
November 11, 2025 AT 08:11you want safety go to a credit union
if you want returns go in with eyes wide open
no one held a gun to their head
they just wanted free money and now they’re mad it didn’t work
grow up
Robert Bailey
November 13, 2025 AT 00:35Man, I feel bad for the folks who lost everything. But honestly? This is why I only use Binance and Coinbase. Low returns, sure. But I know where my money is. No mystery. No fake AI. No influencer hype.
It’s boring. And that’s the point.
Don’t chase the dream. Chase the platform that’s been around longer than your last relationship.
Meagan Wristen
November 14, 2025 AT 02:41I’ve been in crypto since 2017. Seen three big collapses. FTX. Celsius. Terra. And now JPEX.
It’s the same story every time: too-good-to-be-true returns + influencer marketing + zero transparency.
What breaks my heart is the people who thought they were being ‘smart’ by jumping in early. They weren’t smart. They were lonely. They wanted to believe in something better.
Don’t blame them. Blame the system that lets this keep happening.
And if you’re reading this and thinking ‘I could’ve avoided it’-you’re right. But don’t judge. Just help.
Sarah Scheerlinck
November 14, 2025 AT 14:48I’m from the US but I follow HK crypto news closely. What stood out to me was how JPEX used cultural trust-celebrities, sports sponsorships, even mimicking government branding. It wasn’t just a scam. It was a cultural hijacking.
People trusted it because it looked like what they were used to. That’s the real danger. Not the tech. Not the returns. The *perception* of legitimacy.
That’s why education needs to be part of every school curriculum now. Not just finance. Perception literacy. How to spot when something is trying to feel real… but isn’t.
Megan Peeples
November 15, 2025 AT 07:36Did anyone else notice that JPEX’s ‘AI arbitrage’ system was named IAIA? That’s not even a real acronym. It’s just ‘I A I A’-like a baby typing on a keyboard. And people believed this? The same people who think ‘blockchain’ is magic?
And the ‘Proof of Reserves’ PDF? Come on. That’s like showing a screenshot of your bank balance and saying ‘trust me.’
There’s no excuse. Not for the users. Not for the regulators. Not for the influencers. Everyone failed.
And now we’re supposed to feel sorry for them? No. We’re supposed to learn.
Jacque Hustead
November 16, 2025 AT 03:38There’s a quiet group of people who lost everything in JPEX-and they’re not on Reddit. They’re in Hong Kong apartments, staring at their phones, wondering how they got here.
They’re not crypto bros. They’re nurses. Teachers. Grandparents. People who just wanted to save for their kids’ education.
Let’s not reduce this to a meme. Let’s not make it about ‘greed.’ Let’s talk about how we protect the vulnerable next time.
Because the next JPEX is already being built.
Janna Preston
November 16, 2025 AT 09:26I don’t know much about crypto, but I do know this: if someone promises you 20% a month, they’re not trying to help you. They’re trying to take your money.
My grandma got scammed once by a fake Medicare call. She was so embarrassed. But she didn’t blame herself. She just said, ‘I thought they were trying to help.’
That’s what JPEX did. Made people think they were being helped.
Don’t be ashamed if you got caught. Just don’t let it happen again.
gerald buddiman
November 18, 2025 AT 08:13Okay, but… why did the Hong Kong police wait until AFTER the platform collapsed to act? Why weren’t they monitoring the influencer ads? Why wasn’t the SFC blocking domain registrations? Why did it take 2,600 victims before anyone blinked?
This isn’t a failure of users. This is a failure of regulation.
And now they’re acting like they ‘learned their lesson’? Bullshit.
They’re just trying to look good before the next scandal.
Wait for it. The next one’s already live.
Grace Huegel
November 20, 2025 AT 07:19It’s fascinating how people treat crypto like it’s a religion. JPEX didn’t deceive anyone. It merely reflected the collective delusion that wealth can be conjured from thin air, powered by blockchain magic and influencer testimonials.
And now we’re shocked? The temple burned down. The priests fled. The faithful are now weeping over ashes.
How quaint. How predictable. How utterly, tragically human.
Fred Kärblane
November 22, 2025 AT 00:26Let’s talk about the structural flaw: centralized yield platforms are inherently unsustainable. You can’t pay 20% monthly without a constant inflow of new capital. That’s not AI. That’s basic math.
JPEX didn’t need to be a sophisticated scam. It just needed to be the first one to market with flashy UI and celebrity endorsements.
The real innovation? Marketing. Not tech. Not finance. Marketing.
And that’s why the next one will be even slicker. Because the playbook works.
Wendy Pickard
November 22, 2025 AT 10:18I know someone who lost everything in JPEX. They didn’t even tell their family until months later. Too ashamed.
I just sat with them. Didn’t give advice. Didn’t say ‘I told you so.’ Just listened.
Because this isn’t about crypto. It’s about trust. And when trust breaks, the silence is louder than any scam.
Chloe Walsh
November 22, 2025 AT 21:04They said ‘AI arbitrage’ like it was a religion and people bowed down.
It’s not that they were stupid.
It’s that they were tired.
Tired of working. Tired of saving. Tired of watching their money lose value to inflation.
So they believed in magic.
And magic doesn’t pay back.
It just takes.
And now they’re left with silence.
And a phone that won’t open the app anymore.
Angie Martin-Schwarze
November 23, 2025 AT 19:45i think jplex was a goverment op to get more control over crypto?? like they let it grow so they could shut it down and say ‘see? we told you so!’ now they can make all the rules and no one will question it
the real scam is the system
and i think my phone is being hacked because i keep seeing jpec ads on my instagram even though i never searched for it
help
Jeana Albert
November 25, 2025 AT 16:12Why are we still talking about JPEX like it’s some tragic accident? It was a crime syndicate with a website. The influencers? Accessories after the fact. The regulators? Willfully blind. The victims? Willfully ignorant.
And now everyone’s pretending to be shocked? Get over it.
Next time, do your homework-or don’t complain when your money vanishes.
It’s not a conspiracy. It’s just capitalism with extra steps.
Anthony Allen
November 27, 2025 AT 12:45I’m from the US but I’ve got family in Hong Kong. My aunt lost HK$300k in JPEX. She’s 68. She thought it was a ‘government-approved investment.’
I didn’t yell at her. I sat down and showed her how to check if a platform is licensed. We went through the SFC website together.
She’s not using crypto anymore.
But now she helps her friends avoid scams.
That’s the real win.
Not the money. The awareness.