Hong Kong – Police in Hong Kong have apprehended 80 individuals in connection with a massive fraud case involving the cryptocurrency exchange, JPEX. The alleged scam amounts to HK$1.6 billion (US$206 million), making it one of the largest financial fraud cases in recent Hong Kong history.
Authorities have been investigating JPEX since September 2023, following accusations by the city’s Securities and Futures Commission (SFC) that the exchange engaged in “suspicious” activities and promoted investment products without proper licensing.
Of those arrested, 16 have already been charged with “conspiracy to defraud,” according to a police statement released Wednesday. The remaining individuals are currently under investigation. Police officials told reporters that this case represents the largest fraud in Hong Kong in terms of both the number of victims and the total financial losses incurred in recent years.
The case is also notable as the first legal action involving fraud charges related to virtual asset investments since Hong Kong enacted legislation addressing this sector in 2023.
To date, police have received over 2,700 complaints related to the JPEX case, with the total sum involved reaching HK$1.6 billion (US$206 million). Authorities have described the investigation as “highly complex” and have identified at least 14 key individuals involved in the alleged scheme.
Police confirmed that one individual and two alleged “masterminds” have fled the country. Interpol has issued red notices for their arrest. Authorities have frozen assets belonging to the suspects, valued at over HK$200 million (US$25.7 million).
Chief Inspector Ernest Wong of the Commercial Crime Bureau stated that the police “will continue its investigations” and “does not rule out the possibility of prosecuting or arresting more people in the future.” According to police, JPEX used extensive advertising campaigns to promote their services.
DZWatch will continue to monitor this developing story.
