Over 70 individuals have been taken into custody for their involvement in the JPEX Exchange cryptocurrency controversy, resulting in a financial loss of approximately HK$1.6 billion.
Hong Kong Tackling Biggest Financial Fraud Case
Earlier on Thursday, South China Morning Post announced the arrest of these individuals. As per Hong Kong Police Commissioner Raymond Siu Chak-yee’s recent announcement, the arrests took place on the island.
“He shared that there have been 2,636 reports concerning the case up until now, and the total amount implicated is approximately HK$1.6 billion.”
In September 2023, the largest suspected financial fraud case in Hong Kong began to unfold following Bitrace’s announcement of potential rug pull schemes at JPEX Exchange. (A rug pull is a type of fraudulent scheme where the creators of a cryptocurrency project abandon the project and take the funds with them, leaving investors with worthless assets.)
The JPEX cryptocurrency exchange was accused of being part of a money laundering operation, leading to the arrest of an internet celebrity who promoted it. Additionally, Hong Kong authorities apprehended six individuals connected to the exchange. Among them were social media influencers who had advertised for the platform and operated over-the-counter shops.
Some individuals among them were Chan Wing-yee, Joseph Lam Chok, and Sheena Leung who were taken into custody. More than 83 complaints had been filed regarding the exchange. These issues prompted the Securities and Futures Commission (SFC) to strengthen regulations for digital assets in response.
The Securities and Futures Commission (SFC) of Hong Kong identified JPEX Exchange as an unauthorized platform suspected of questionable dealings. In response, JPEX disputed the SFC’s accusations, labeling them as hasty and lacking evidence.
72 Suspects Linked To JPEX Exchange Nabbed Thus Far
At some point, Chris Tang Ping-keung, the Security Secretary, announced that authorities had confiscated $11 million worth of assets during their investigation into the rugpull incident. A dozen individuals, including JPEX Technical Support Company workers and prominent social media influencers, were already in custody by then.
More recently, Chang Tung-Ying, the leading partner, and Shi Yu, an associate connected to JPEX Exchange, were among those taken into custody. The number of arrests now reaches 72. Some of the suspects have been granted bail.
During the current probes, Nine Chen, a well-known Taiwanese singer previously linked to JPEX, was summoned to give evidence. Despite these allegations, JPEX’s clients continued to be charged excessive withdrawal fees for digital assets.
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2024-04-18 21:37