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- Hong Kong charged 16 individuals, together with Joseph Lam, within the HK$1.6 Billion JPEX crypto fraud case.
- Police seized HK$228M in belongings as Interpol hunts three key JPEX suspects overseas.
- The case marks Hong Kong’s first JPEX prosecution beneath anti-money laundering legal guidelines.
In reference to the JPEX crypto fraud totalling HK$1.6 billion, 16 people have been charged with fraud. Among the many group, 12 have been males whereas 4 have been girls, which included former barrister Joseph Lam Chok. Police said the JPEX fraud was one of many largest monetary frauds in Hong Kong, with victims dropping hundreds of thousands in digital belongings.
In accordance with the authorities, the defendants have been members of an organised system that, utilizing the JPEX buying and selling platform, solicited investments in digital belongings with out the required licences.
Police Seize Hundreds of thousands in Belongings as JPEX Fraud Investigation Expands
Out of the 16, six have been categorized as main or pivotal members whereas seven have been categorized as promoters and the remaining as OTC (over-the-counter buying and selling). Investigators declare that the accused collaborative group sketched out plans to defraud the buyers after which, afterwards, shifted and laundered the funds.
The police first investigated the system in September 2023, because the fraud victims have been reporting to authorities. By February 2025, 2636 victims had been recognized, and their reported losses in worth totaled HK$1.616 billion, the JPEX operation loss. Within the digital asset degree, the JPEX operation loss was one of many worst losses within the area.
Additionally Learn: Hong Kong Lets Crypto Exchanges Entry World Markets: Report
For the reason that investigation began, the Industrial Crime Bureau claims to have made 80 arrests. Officers have additionally frozen belongings price over HK$228 million, which incorporates cryptocurrency price HK$14.5 million, luxurious vehicles, actual property, money, and financial institution accounts.
Interpol Hunts JPEX Ringleaders Amid First Prices
Chief Superintendent Ernest Wong Chun-yue mentioned Interpol has been requested to trace down three key targets. It’s suspected that the 2 leaders and one core member left Hong Kong earlier than the investigation turned extra severe. Wong mentioned that the case is a fancy one as a result of it claims that social media advertising was used to achieve the belief of the buyers.
Senior Superintendent Fanny Kung Hing-fun admitted that throughout the early phases of the investigation, numerous suspects additionally managed to flee. Interpol has been requested to problem purple notices for his or her detention. Data from the Safety Bureau signifies that 666 victims have determined to not pursue authorized motion, 659 have grow to be unlocatable, and 1,311 have offered full testimony to the police.
The prosecution is the primary JPEX case charged beneath the Anti-Cash Laundering and Counter-Terrorist Financing Ordinance. The officers declare that the JPEX Ordinance does give them extra powers to prosecute advanced monetary crimes involving digital belongings. Every conviction is capped at a advantageous of 1 million HKD and a most of seven years imprisonment.
The cash laundering costs which were levied on all 16 defendants is similar for Lam and promoter Chan Wing-yee. On Thursday morning, the group is meant to indicate up on the Jap Court docket. Prosecutors will seemingly present how the group’s actions tie to the JPEX buying and selling platform and its related promotions.
One related to the case is the Taiwanese entertainer 9 Chen (Chen Lingjiu). In Taiwan, Chen is claimed to have acquired 320,000 Tether tokens (roughly 10 million NT) from a Hong Kong businessman for the aim of promoting JPEX.
The Securities and Futures Fee mentioned the JPEX-linked retailers and promoters misled buyers. They fraudulently mentioned the change was making use of for regulatory approval when there was no such utility.
Regulatory knowledge point out that 11 exchanges—specifically, HashKey, OSL, HKVAX, Bullish, BGE, and HKBitEx—have been greenlit for retail buying and selling in Hong Kong.
Supply: Hong Kong SFC
Massive gamers within the area, Bybit and Crypto.com, are nonetheless ready for suggestions on their submissions. The prosecution of JPEX suggests an rising give attention to enforcement regarding fraud and unlicensed actions within the cryptocurrency sector in Hong Kong.
Additionally Learn: Hong Kong SFC Raises Alarm on Crypto Treasury Corporations Amid Rising Investor Threat
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