Hong Kong Security Minister Vows to Apprehend JPEX Leader
Hong Kong’s security minister, Chris Tang Ping-keung, has pledged to capture the leader of fraud crimes at the cryptocurrency exchange JPEX. The police have confirmed that they are seeking help from Interpol in locating the individuals responsible for running JPEX.
Tang stated that more information could not be disclosed without additional evidence, but he mentioned that the police had reached out to several celebrities who were involved in promoting the platform.
Hong Kong Police Arrest Celebrities Involved with JPEX
So far, Hong Kong police have arrested 12 people connected to JPEX, including employees, crypto store staff, and online influencers. Among those apprehended are YouTubers Chan Wing-yee and Chu Ka-fai, as well as celebrities Julian Cheung Chi-Lam, Jacqueline Ch’ng Se Min, Clement Chan Ting-bong, and social media influencer Joseph Lam Chok. These individuals are suspected of conspiring to commit fraud by operating an unlicensed crypto exchange. The arrests were made after the police received over 2,300 complaints from customers.
The authorities have also seized $1 million in cash and $9.9 million worth of real estate and cryptocurrencies related to the fraudulent activities. Early estimates suggest that customers of JPEX have lost approximately $192 million.
Regulations Delayed Arrests, Says Former SFC Chief
The former chair of the Hong Kong Securities and Futures Commission (SFC), Anthony Neoh, has defended the SFC against allegations of slow action. He explained that regulations on virtual assets did not come into effect until June 1 of this year. Therefore, prior to that date, the commission lacked legal powers. Neoh believes that the SFC acted in good faith and made judgments based on the best available information. Currently, only two exchanges, HashKey and OSL, have obtained licenses after the SFC implemented new rules in June.
Hot Take: Hong Kong Cracks Down on Crypto Fraud
Hong Kong is intensifying its efforts to combat crypto fraud by apprehending the leaders behind the JPEX scam. The arrests of employees, celebrities, and influencers involved in the fraudulent activities demonstrate the government’s commitment to protecting investors. However, the delay in implementing regulations by the SFC has been criticized, with accusations of inadequate oversight. Moving forward, it is crucial for Hong Kong to strike a balance between supporting blockchain technology and taking decisive action against illegal activities. By enforcing stricter regulations and licensing requirements, the government aims to safeguard the integrity of the cryptocurrency industry and restore trust among investors.
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