Six Arrested in Hong Kong over $128m Cryptocurrency Fraud Allegations
On sept. 18, 2023, Hong Kong’s securities regulators and police took action against local cryptocurrency trading platform, JPEX, over suspected fraudulent activity. The suspected fraud involved at least HK$1 billion (US$128 million) in virtual assets and approximately 1,400 users.
Arrests Made and Warnings Issued
On that same day, Hong Kong officers arrested six individuals in connection to the suspected fraud, including an online influencer named Joseph Lam. Two women and four men were taken into custody, less than a week after the city’s financial regulators issued a warning to investors about JPEX.
JPEX’s Alleged Illegal Practices
Investigations on JPEX began in August as the Securities and Futures Commission (SFC) and other authorities suspected the platform of selling unregistered securities and fraudulent trading practices, although the details of the alleged scam have yet to be disclosed. The SFC notified the public about the fraud suspicions through its official website.
After the warning, JPEX announced that it would cease its operations and that its users would no longer be able to trade or withdraw their virtual assets.
Previous Cryptocurrency Fraud Cases in Hong Kong
This isn’t the first time authorities have targeted fraudulent activities in the cryptocurrency market in Hong Kong. In July 2022, Hong Kong police busted a Bitcoin scam that reportedly defrauded investors of HK$200 million (US$25 million).
Protecting Investors and Maintaining Financial Integrity
The ongoing crackdown on cryptocurrency fraud highlights the need for Hong Kong regulators to continue their efforts in protecting investors and maintaining the integrity of local financial markets.
Keeping Informed
Victims of the JPEX scam and other concerned users are urged to keep informed about updates from the SFC and the police investigation as more details emerge.
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