Hong Kong Police arrested 8 additional individuals on Thursday in connection with the JPEX scandal, bringing the total number of arrests to 36. The alleged fraud at the JPEX crypto exchange has resulted in a staggering amount of losses, with a total of 2,595 people reporting financial damages. The estimated amount of money defrauded in this scam has reached 1.6 billion yuan, equivalent to $213 million. Initially, it was believed that the fraud amounted to around $154 million.
Last month, it was revealed by Hong Kong’s Securities and Futures Commission (SFC) that the JPEX exchange, based in Dubai, had been operating without a valid license for crypto trading in the city-state.
Notable individuals implicated in the fraud
The police have released all the arrested individuals on bail as investigations are ongoing. They are required to report to the police from late this month to late December. Among those investigated in connection with the alleged fraud are prominent influencers.
“Trolling King” Joseph Lam, a barrister turned insurance salesman who boasts a large following on Instagram, was arrested and questioned last month.
In addition, Chan Yee, a YouTube personality with 200,000 subscribers, was also arrested by the police.
Continued Investigation and Regulatory Response
The Hong Kong police have confirmed that the investigation into the JPEX crypto exchange is still ongoing, and further arrests are not ruled out.
Following the JPEX scandal, Louise Ho Pui-shan, the Commissioner of Customs and Excise in Hong Kong, has called for greater oversight and regulatory measures to address the risks of money laundering within the cryptocurrency sector.
In response to the fallout from this multimillion-dollar scam, Hong Kong’s central bank and securities regulator have introduced stricter regulations for cryptocurrencies. The revised guidelines now restrict certain crypto offerings exclusively to professional investors. The Hong Kong Monetary Authority and the Securities and Futures Commission have emphasized that the complexity and risks associated with virtual asset products may be too high for retail investors.
