Authorities supervision is required to guard traders and crack down on unlicensed platforms, Lee mentioned in response to the report. The Hounax case follows an identical one involving crypto alternate JPEX, which led to the arrest of six individuals in September after greater than a thousand complaints involving a complete of $128 million have been filed. The Securities and Futures Fee (SFC) mentioned JPEX was additionally working with no license, prompting Lee to name for stronger licensing legal guidelines on the time.