Hong Kong Authorities Seize $11M in JPEX Crypto Scam Investigation

Hong Kong’s Security Chief, Chris Tang Ping-keung, has publicly committed to tackling the JPEX cryptocurrency exchange scandal, now labeled as the most significant digital currency scam in the nation’s history.

The scope of the issue was disclosed in a press briefing on September 27.

Local sources reveal that law enforcement has made impressive progress in the matter. To date, 12 suspects have been detained, and assets totaling approximately 85 million HK$ ($10.8 million) – encompassing cash, properties, and digital currencies – have been confiscated.

Among the detainees, three were linked to JPEX Technical Support Company, and two prominent YouTubers, Chan Wing-yee and Chu Ka-fa, were also involved.

At the heart of the controversy is the JPEX cryptocurrency exchange, which is believed to have conducted unauthorized operations, misleading its clientele and resulting in financial losses amounting to millions.

Police records in Hong Kong indicate a staggering 2,369 grievances from investors who poured their savings into this non-compliant exchange.

The monetary repercussions of this fiasco are believed to reach approximately 1.4 billion HK$ ($178 million).

The Securities and Futures Commission (SFC) initially raised concerns about JPEX on September 13, issuing a warning about its unregulated digital trading activities.

The situation turned murkier when, amid a surge of complaints and regulatory alerts, the platform suddenly raised its withdrawal charges to 999 USDT. This action was widely seen as a deterrent to prevent users from making withdrawals.

Speaking to the media, Tang emphasized the relentless pursuit to bring the chief orchestrators of this fraud to justice, stressing the importance of nabbing these masterminds to fully resolve the situation.

Tang also mentioned that collaborative initiatives with national regulators are underway, aiming to implement stringent safeguards against potential fraudulent practices in the future.