Hong Kong Police Arrest Four More in JPEX Crypto Fraud Investigation
Hong Kong police have made four additional arrests in connection with a suspected HK$1.5 billion ($157 million) fraud at the cryptocurrency exchange JPEX. The individuals detained are said to be “relatively close to the core” of the operation. During one of the arrests, police discovered shredded and bleached documents in an apartment. The scale of the syndicate involved is large, and further investigation is required, according to Eve Chung Wing-man, assistant police commissioner for crime.
Visa Cards Bearing JPEX Label Seized
During the investigation, police seized cash, gold bars, watches valued at HK$8.7 million, and unauthorized Visa cards bearing the JPEX label. One individual had a bank account with HK$3 million frozen and casino chips worth HK$500,000 were also confiscated.
As part of the joint operation between Hong Kong and Macau police, search warrants were executed at six premises resulting in the arrest of a 28-year-old man named Tang. Police found HK$880,000 in cash, luxury wristwatches, and bleached and shredded documents at these locations.
A total of 18 arrests have been made so far in what is believed to be one of Hong Kong’s largest ever fraud cases. The police have received reports from 2,417 citizens who reported losses exceeding HK$1.5 billion.
JPEX Saga Unfolds
The controversy surrounding JPEX began on September 13 when the Securities and Futures Commission (SFC) identified the platform as operating without a license in Hong Kong. This led to its suspension of trading and subsequent investigations by law enforcement agencies.
Hot Take: Hong Kong Crypto Exchange Fraud Exposes Vulnerabilities
The recent fraud case at JPEX highlights the vulnerabilities in the cryptocurrency industry. As more individuals and organizations enter the space, it becomes crucial to implement stringent regulations and oversight to prevent fraudulent activities. The involvement of social media influencers in this case emphasizes the need for thorough due diligence when engaging with crypto platforms. Additionally, this incident serves as a reminder for investors to exercise caution and conduct proper research before entrusting their funds with any exchange.
Insa’s extensive background in the financial realm encompasses roles as a writer, trader, and personal finance coach. Her proficiency spans a wide spectrum, ranging from commodities and indices to forex and cryptocurrencies. Insa’s specialization lies in furnishing strategic investment advice tailored to the fintech investment niche.