A social media influencer was arrested on Monday as part of an investigation into suspected fraud involving the cryptocurrency exchange JPEX.

Lam Chok, a former lawyer, was taken away from his office in Central by police, with officers also seizing suspected evidence including a substantial amount of cash.

JPEX earlier announced that it was suspending trading, saying "negative news" and "unfair treatment by relevant institutions" had led its partners to freeze funds, resulting in higher running costs and operational difficulties.

“We promise to recover liquidity from third-party market makers as soon as possible and gradually adjust the withdrawal fees back to normal levels,” a statement said.

JPEX said existing orders remain effective until they mature, adding that the platform will continue to operate.

At a press conference, lawmaker Johnny Ng said around 30 JPEX investors had sought help, saying they had lost around HK$100 million between them.

“I think the government needs to review the regulations and how to disclose more information more timely to let investors know what they are investing in, and which exchange or entities are legal and regulated," Ng said.

One woman told reporters that she had lost more than HK$100,000.

"A lot of my friends said they did everything they could to invest, hoping to enjoy good returns in future," she said.

Police said on Saturday that they had received 83 reports regarding the cryptocurrency exchange.

On Friday, the Securities and Futures Commission said JPEX had not applied for a licence to operate in Hong Kong, despite its claim to be “a licensed and recognised platform to facilitate the trading of digital asset and virtual currency”.