Update on Cryptocurrency Red Notice Issued by Interpol
Interpol has recently issued a “red notice” for two Hong Kong citizens who were involved in promoting cryptocurrency investments and selling crypto mining machines.
Wong Ching-kit, aged 30, is facing charges related to fraud and theft, while Mok Tsun-ting, aged 26, is wanted for allegedly dealing with property that is linked to proceeds of a crime.
Legal Troubles and Controversies Surrounding Wong and Mok
In March 2019, Wong and Mok were initially arrested by Hong Kong police on charges of conspiracy to commit fraud. The allegations against them included making false claims on social media and during investment seminars to sell Filecoin mining machines.
- 18 individuals have reported total losses of HK$2.6 million due to the alleged fraud since late 2018.
- Both Wong and Mok were released on bail following their initial arrests.
Wong, also known as the “master of crypto,” and his assistant Mok have been at the center of various cryptocurrency controversies in Hong Kong.
- Mok was arrested in September in connection with the JPEX crypto exchange fraud case, which is the largest cryptocurrency fraud case in the history of Hong Kong.
- Over 70 arrests have been made in relation to the case, with estimated losses of HK$1.6 billion and over 2,600 victims.
Interpol’s Red Notice and Hong Kong’s Response
A red notice from Interpol serves as a global alert to law enforcement agencies for the location and provisional arrest of an individual pending extradition or other legal actions. The notice is issued based on an arrest warrant or court order from the requesting country’s judicial authorities.
- Member countries are responsible for deciding whether to act on a red notice or not.
- Prior to Wong and Mok, Hong Kong authorities have sought red notices for six other individuals through Interpol.
Regulatory Developments in Hong Kong’s Crypto Industry
Hong Kong is actively working towards establishing a comprehensive regulatory framework for the cryptocurrency sector.
- The Securities and Futures Commission (SFC) initiated consultations on regulatory rules for the industry last year.
- In March, the Virtual Asset Service Providers licensing regime came into effect in Hong Kong, requiring crypto exchanges to register with the regulator.
- The deadline for virtual asset trading platform (VATP) crypto license applications in Hong Kong passed on February 29, with 24 applicants submitted.
Despite positioning itself as a crypto-friendly hub, Hong Kong witnessed a series of crypto exchange closures in May.
- On March 28, HKVAEX, suspected to be affiliated with Binance, withdrew its license application.
- Subsequently, IBTCEX, QuanXLab, Huobi HK, Gate.HK, OKX HK, and Bybit (Spark Fintech Limited) followed suit with closures in May.
Hot Take: Understanding the Impact of Interpol’s Red Notice
The issuance of a red notice by Interpol against two individuals involved in cryptocurrency promotions and sales showcases the global effort to crack down on fraudulent activities within the industry. Hong Kong’s regulatory initiatives and enforcement actions reflect a broader trend towards enhancing oversight and accountability in the crypto sector.
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