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Hong Kong Security Chief Pledges to Track and Apprehend Leaders of JPEX Crypto Scam

Hong Kong Security Chief Pledges to Track and Apprehend Leaders of JPEX Crypto Scam

Key Takeaways

* Hong Kong Security Chief Chris Tang Ping-keung is determined to apprehend the leaders of JPEX, a crypto platform involved in the city’s largest alleged financial fraud.

* 15 individuals have been arrested, and assets worth HK$85 million ($10.8 million), including HK$8 million in cash, have been seized by the police.

* Financial Secretary Paul Chan Mo-po emphasizes the need for a proper regulatory framework for Web3-related business ventures.

The Ongoing Investigation

Hong Kong’s Secretary for Security, Chris Tang Ping-keung, has pledged to apprehend the key operators behind JPEX, a cryptocurrency platform at the center of the city’s largest alleged financial fraud. As of September 27, 2023, the police have arrested 15 individuals and seized more than HK$8 million ($1 million) in cash, along with other assets valued at HK$77 million ($9.8 million). These assets include real estate and digital currencies. The case involves suspected losses of HK$1.5 billion ($191.9 million) and has impacted more than 2,400 victims.

Regulatory Concerns

Financial Secretary Paul Chan Mo-po stated that Hong Kong must regulate business ventures related to Web3, the next generation of the internet. “We must incorporate business operations related to Web3 into a proper regulatory framework and crack down on any illegal activities,” Chan said. Authorities aim to impose “balanced regulations” to protect investors and prevent money laundering risks.

The Arrests

Among the 15 arrested individuals are Chung Wai-hin, a 23-year-old director of cryptocurrency exchange store Money Lupin, influencer Sheena Leung who runs the YouTube channel “sheung-8888,” and a staff member of cryptocurrency store Unicoin. On Monday, Wong Sheung-yin, another director of Money Lupin, was also arrested.

Regulatory Oversight

The Securities and Futures Commission previously identified JPEX as an unlicensed cryptocurrency exchange with “suspicious features.” Only two platforms, HashKey and OSL, have obtained licenses for retail cryptocurrency trading services in Hong Kong. Four other companies are awaiting approval.

Hot Take: Hong Kong Cracks Down on Crypto Fraud

Hong Kong’s authorities are taking decisive action against the alleged financial fraud involving JPEX, a cryptocurrency platform. With the arrest of 15 individuals and the seizure of significant assets, including cash and digital currencies, the government is sending a strong message to protect investors and prevent illegal activities in the crypto space. The need for proper regulatory oversight is emphasized by Financial Secretary Paul Chan Mo-po, who stresses the importance of incorporating Web3-related business ventures into a regulatory framework. As the investigation continues, Hong Kong aims to establish balanced regulations that safeguard its financial system while fostering innovation in the crypto industry.

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Hong Kong Security Chief Pledges to Track and Apprehend Leaders of JPEX Crypto Scam