Police have been investigating JPEX since September 2023 after the city’s securities regulator accused the platform of “suspicious” activities and promoting its products without a licence. Since then, 80 individuals have been arrested, with 16 already charged over offences including “conspiracy to defraud,” while the rest remain under investigation.
This case is described as the largest fraud scheme in Hong Kong in recent years, both in terms of the number of victims and the amount of losses incurred. It marks the first prosecution for fraudulently inducing others to invest in virtual assets since Hong Kong introduced relevant legislation in 2023.
Police characterized the investigation as “very complex” and identified at least 14 individuals as core members. More than 2,700 reports related to the case have been received, with the total amount involved reaching HK$1.6 billion ($206 million), and assets worth over HK$200 million have been frozen.
Chief Superintendent Ernest Wong stated that police “will continue our investigation” and cannot rule out further arrests or prosecutions in the future. Two of the “masterminds” and one core member have fled overseas, prompting Interpol red notices for their capture.
JPEX promoted itself through extensive advertising campaigns that touted high returns and low risks, leveraging online influencers to attract investors. The group allegedly transferred and laundered the deposited assets through cryptocurrency wallets, with those arrested including social media influencers and holders of dummy bank accounts.
Plataforma with AFP
