8 Additional Arrests in JPEX Scandal, Fraud Total Tops $213M

Hong Kong, - The notorious JPEX scandal took another turn yesterday as the Hong Kong Police made 8 more arrests, bringing the total number of those taken into custody in connection to this case to 36.

This fraud case has shaken the crypto community, with a staggering 2,595 individuals reporting losses due to their dealings with the JPEX crypto exchange. The total defrauded amount has reached a monumental sum of 1.6 billion yuan, which translates to a whopping $213 million. To put things into perspective, the initially suspected fraud amount hovered around $154 million, showing the sheer magnitude of the scam.

Sources reveal that the Dubai-based JPEX had been trading without an authentic license, as stated by the Hong Kongs Securities and Futures Commission (SFC) last month. This lapse further raises questions about the integrity of the platform and its operations in the city-state.

As the investigation of the JPEX scandal continues, the arrested individuals have been released on bail, and they are scheduled to report back to the police from late this month until December. Among those investigated include significant influencers, such as Joseph Lam, who goes by the moniker “Trolling King” on Instagram. The former barrister turned insurance salesman has a notable presence in the social media scene. Another prominent figure is Chan Yee, a YouTube personality with a following of 200,000 subscribers.

Local media outlets have reported that the Hong Kong Police's investigation into the JPEX crypto exchange remains active. The possibility of more arrests is still very much on the table.

In light of the JPEX scandal, Hong Kong's crypto regulations are undergoing a significant transformation. Louise Ho Pui-shan, Hong Kongs Commissioner of Customs and Excise, has vocally advocated for amplified regulatory measures. This call to action stems from the growing concerns about money laundering within the crypto realm.

The adverse effects of this scandal have prompted the citys financial watchdogs to revisit governance protocols for cash-for-crypto shops. Additionally, the Hong Kong Monetary Authority, in conjunction with the Securities and Futures Commission, has rolled out more stringent cryptocurrency guidelines. These revised regulations primarily target professional investors, emphasizing the inherent complexities and potential risks tied to virtual asset-related products.

Related news:

Warning Bells in Hong Kong: Crypto Exchange JPEX Scandal Sends Shockwaves Globally

The JPEX scandal in Hong Kong serves as a global warning about the risks of trading on unregulated crypto platforms. With at least 1.43 billion Hong Kong dollars involved, this case has led to 11 arrests, including social media influencers. Hong Kong's Chief Executive, John Lee, urges investors to use only regulated platforms to safeguard their assets. The incident calls for heightened public awareness and stricter global regulations in the rapidly evolving world of cryptocurrencies.

News 2023-10-02

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About JPEX Scandal

Last month, people using JPEX had problems taking out their money because the platform made withdrawal costs very high. The SFC said the platform made untrue statements about being controlled in Dubai.

JPEX advertised a lot, using big signs and online famous people to get more users. Some of these famous people have been taken by the police.

This JPEX issue has made people in Hong Kong not trust this kind of investment. 28 people connected to this problem have been taken by the police after 2,500 people complained. The police are still looking into it.

Bitrace, a digital money tracking company, said last month that some online money related to JPEX was used in bad ways, like for illegal betting. This has made people worry about the safety of the online money.