More than 70 people have been arrested so far in connection with the JPEX Exchange cryptocurrency scandal that led to the eventual loss of HK$1.6 billion.
Hong Kong Tackling Biggest Financial Fraud Case
Local news outlet South China Morning Post reported the arrest of these suspects earlier on Thursday. According to an update offered by Hong Kong Police Commissioner Raymond Siu Chak-yee, these arrests were made on the Island.
“The force has received 2,636 reports with regard to the case as of today, and the amount involved is about HK$1.6 billion,” he said.
The case, which is emerging as Hong Kong’s biggest case of alleged financial fraud, started in September 2023 after Bitrace stated the possibility of Rugpull activities at JPEX Exchange.
The exchange faced charges of involvement in a money laundering scheme. An internet celebrity was even arrested for endorsing the JPEX cryptocurrency exchange. Six other people were also detained by Hong Kong authorities including social media influencers who had appeared in adverts for the trading platform and set up their over-the-counter shops.
Chan Wing-yee, Joseph Lam Chok, and Sheena Leung were some of the arrested individuals. There were over 83 complaints related to the exchange. These concerns forced the Securities and Futures Commission (SFC) to tighten regulatory rules for digital assets.
The SFC named JPEX Exchange as an unlicensed platform that was involved in suspicious activities. In defense, JPEX contested the Hong Kong SFC’s charges, calling them premature and unsubstantiated.
72 Suspects Linked To JPEX Exchange Nabbed Thus Far
At one point, Secretary for Security Chris Tang Ping-keung stated that assets worth $11 million had been seized in connection with the rugpull. By that time, a total of 12 suspects, inclusive of JPEX Technical Support Company employees and notable social media personalities, had been taken into custody.
One of the most recent arrests was that of Chang Tung-Ying, the chief partner, and Shi Yu, an educator linked with JPEX Exchange. All of these arrests have now totaled 72. A few of the implicated individuals have been released on bail
Amidst the ongoing investigations, popular Taiwanese singer Nine Chen who was at a time associated with JPEX, was brought in to testify. All of these accusations did not stop the exchange from hitting users with exorbitant fees for virtual asset withdrawals.
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