Japanese police have arrested four more people in connection with the investigation into the JPEX crypto exchange, bringing the total number of detained individuals to 18.
The investigation is looking into allegations of a multi-million dollar case of fraud involving JPEX, which was formerly known as jCryptoCoin Exchange. The exchange is accused of defrauding both customers and investors through manipulation of the market and false advertising.
The four additional individuals arrested were said to have worked as managers of JPEX and are believed to have been involved in the scheme to defraud the investors.
Since the investigation began in August 2020, police have made a total of 18 arrests, including the CEO and COO of JPEX.
The investigation is being conducted by the Tokyo Metropolitan Police Department, with assistance from the Financial Services Agency (FSA), Japan’s financial regulator.
The FSA has also announced that it has ordered JPEX to cease operations for one month beginning on November 6. The regulator said that it conducted an on-site inspection on JPEX and concluded that the exchange had violated the fund settlement law.
The FSA further stated that the exchange had failed to properly implement proper internal control systems, such as segregation of client assets and the requirements on anti-money laundering measures.
The exchange was already under fire earlier this year after it was reported that some JPEX customers had faced problems withdrawing their funds. The users had alleged that the exchange had taken their funds and refused to give it back.
JPEX had denied any wrongdoing and stated that the withdrawals were delayed due to the large number of customers who were demanding the return of their funds and related technical issues.