Four More Arrests Made in JPEX Crypto Exchange Probe, Total Detentions Now at 18
Four more individuals have been arrested in connection with the alleged fraud involving the malfunctioning South Korean crypto exchange JPEX.
The new arrests come after the arrests of 14 individuals on April 17th, in an investigation being conducted by the Seoul Metropolitan Police Agency.
The police have accused the exchange of fraud in relation to over-the-counter (OTC) transactions due to the exchange’s failure to properly carry out investor security audits and following incorrect listing procedures.
The arrested individuals are suspected to have carried out a total of over 600 million won ($510,000) in illegal OTC transactions. According to the police, the suspects are alleged to have been involved in activities such as selling non-existent coins or selling investor information to third parties.
The police are still searching for 2 individuals accused of the same crimes, with the investigation set to expand further.
JPEX ceased its operations shortly after the initial arrests on April 17, citing the investigation as the reason for its closure. The incident highlighted the importance of proper vetting and listing procedures, as well as the need for effective investor security measures within crypto exchanges.