Hong Kong Police arrest over 70 people and freeze nearly HK$230 million in assets in JPEX case

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18th April 2024 – (Hong Kong) Hong Kong police have intensified their crackdown on the sprawling JPEX cryptocurrency scandal, marking it as the city’s most substantial case of alleged financial fraud. The police force has arrested more than 70 individuals and frozen assets nearing HK$230 million, Police Commissioner Raymond Siu revealed during a legislative update.

The controversy surrounding JPEX, a cryptocurrency trading platform, erupted in September last year when the securities watchdog flagged it as unlicensed and accused it of engaging in dubious activities. Despite facing regulatory heat, JPEX continued to levy hefty withdrawal fees on its users, which further fueled public and investor unrest.

Commissioner Siu informed legislators that the police had now detained 72 people linked to the scandal, with frozen assets amounting to approximately HK$228 million. “As of today, we have received 2,636 reports related to this case, involving around HK$1.6 billion,” Siu stated.

The arrests have not only targeted key figures within the trading platform but also extended to social media influencers like Chan Wing-yee, Joseph Lam Chok, and Sheena Leung. These individuals had not only promoted JPEX but also established their own over-the-counter trading hubs, amplifying their involvement in the scandal.

Further complicating the issue, Siu also disclosed that Hong Kong witnessed 6,330 investment scams last year, with losses surpassing HK$5.93 billion. A significant portion of these scams, involving about HK$3.16 billion, was related to cryptocurrency, highlighting the growing threat in this sector.