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Government supervision is needed to protect investors and crack down on unlicensed platforms, Lee said according to the report. The Hounax case follows a similar one involving crypto exchange JPEX, which led to the arrest of six people in September after more than a thousand complaints involving a total of $128 million were filed. The Securities and Futures Commission (SFC) said JPEX was also operating without a license, prompting Lee to call for stronger licensing laws at the time.
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