JPEX fraud: Hong Kong authorities make more arrests

• The JPEX case has garnered widespread attention as one of Hong Kong’s largest fraud scandals.
• Throughout the investigation, authorities have apprehended various individuals linked to the case, including crypto influencers.

Hong Kong and Macau authorities have made multiple arrests and asset seizures in the ongoing JPEX crypto exchange fraud case.

The case has garnered widespread attention as one of Hong Kong’s largest fraud scandals, with over 2,300 complaints from victims and estimated losses of approximately $178 million.

On 29 September, authorities reported the apprehension of two Hong Kong men linked to the JPEX case. These individuals allegedly played a role in establishing casino accounts in Macau as part of an elaborate scheme to launder illegal funds.

As a result of their arrests, the police seized over 14 million Hong Kong dollars (approximately $1.7 million) in cash and froze casino assets.

In a related development, law enforcement detained two more suspects, bringing the total number of arrested individuals to 18. Interestingly, one of these suspects was caught attempting to destroy potential evidence by using paper shredders and bleach in the bathtub of an apartment.

During the recent police operation, authorities also confiscated cash and gold valued at 8.7 million Hong Kong dollars (around $1.1 million) from three different apartments.

The story so far

The JPEX fraud case initially came to light when Hong Kong’s financial watchdog issued a warning against the crypto exchange for operating in the region without the necessary licenses.

Following the warning, JPEX increased its withdrawal fees to nearly $1,000, and its staff abandoned their booths at the Token 2049 event in Singapore.

Throughout the investigation, authorities have apprehended various individuals linked to the case, including crypto influencers and employees of JPEX.

However, the masterminds behind the fraud scandal remain at large, prompting the Hong Kong police to seek assistance from Interpol in tracking down the suspects.

Hong Kong’s Secretary for Security, Chris Tang Ping-keung, has strongly committed to delivering justice to the victims of the JPEX scam and ensure accountability.

In the wake of the scandal, the Hong Kong financial regulator said it will reveal a list of firms that have filed for retail crypto trading licenses launched recently. It will also reveal a list of suspicious crypto trading platforms.