Renowned actor Zhang Zhilin, once an ambassador for JPEX, a Hong Kong-based unlicensed virtual asset trading platform, is under the scanner for a scam involving nearly 1.2 billion. As the case heats up, Zhang has stepped forward to assist the police with their inquiries.
While many celebrities from mainland China have endorsed P2P platforms, a rising trend sees celebrities from Hong Kong, Taiwan, and overseas promoting virtual currencies. For instance, in November 2021, JJ Lin spent $123,000 on three virtual plots on Decentraland, only to see their value plummet by over 90% in just two years.
The FTX exchange, which had endorsements from NBA star Stephen Curry, football legend Tom Brady, and tennis player Naomi Osaka, faced investor lawsuits after allegations of fraud surfaced.
While the A-share market is regulated, the virtual currency market remains like the wild west. Any exchange, including the widely-used Binance, can have shady dealings. In the crypto world, a scam involving 1.2 billion Hong Kong dollars is merely a drop in the ocean.
FTX, once the US's largest and the world's second-largest virtual currency exchange, faced its downfall in 2022. Allegations arose that FTX secretly transferred $10 billion of customer funds to its investment company, Alameda Research. Within days, billions were withdrawn, leading to its bankruptcy.
Today, the virtual currency market isn't what it was a few years ago. With a lack of regulations and an increasing amount of negative news, the inflow of new funds has decreased. Many exchanges are now focusing on existing funds.
In conclusion, if you're venturing into the world of virtual currencies, always keep your assets in a cold wallet and never fully trust any exchange.