Hong Kong and Macao Police Arrest Four More Suspects in JPEX Cryptocurrency Scam
Four additional suspects have been apprehended by the Hong Kong and Macao police in connection with the JPEX cryptocurrency platform scam. Two individuals from Hong Kong, who were caught in Macao, have been returned to Hong Kong for investigation. The pair had HK$6.5 million ($830,390) in cash and valuables, with an additional HK$8.2 million frozen in their casino accounts. Despite the lack of formal extradition agreements between Hong Kong and Macao, the decision on their fate will be made by the courts in Macao. The two individuals were transported from the ferry terminal to undisclosed locations in police vans.
Two More Arrests Made, Bringing Total to 18
In addition to the arrests in Macao, two more men were detained last week in connection with the JPEX case. These recent arrests involve individuals described as being “relatively close to the core” of JPEX, making it the largest fraud case of its kind in Hong Kong. The total number of arrests related to the JPEX scam has now reached 18, and more are expected.
JPEX Scam Targets Retail Investors
JPEX, which was established in 2021, targeted retail investors through extensive advertising campaigns. The platform claimed to be a licensed cryptocurrency exchange and promised high returns of up to 20%. However, on September 13, Hong Kong’s Securities and Futures Commission accused JPEX of operating without a license and engaging in suspicious activities.
Concerns for the Industry and Government Efforts
The fallout from the JPEX debacle is expected to present significant challenges for virtual asset companies and hinder the government’s efforts to expand the sector. Analysts and industry experts have expressed concern about the negative impression this case has created for digital assets and the broader Web3 industry in Hong Kong. Despite this, analysts believe that the long-term prospects for the industry may still be promising.
Hot Take: Hong Kong and Macao Police Continue Crackdown on JPEX Scam
The recent arrests made by the Hong Kong and Macao police in connection with the JPEX cryptocurrency platform scam demonstrate their commitment to cracking down on fraudulent activities in the digital asset space. With a total of 18 arrests so far, authorities are sending a strong message that they will not tolerate scams that target retail investors. While the JPEX case has created a negative impression for digital assets in Hong Kong, it also highlights the importance of building an institutional digital asset economy with strong investor protection measures. Despite the challenges posed by this case, the long-term prospects for the industry remain optimistic.
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