The Secretary for Security of Hong Kong, Chris Tang Ping-keung, has made a commitment to seeking justice for those affected by the JPEX crypto exchange fraud. In a press conference held on September 27, Tang announced that the police are actively pursuing the key individuals responsible for orchestrating the largest digital asset fraud in the country’s history.
During the conference, Tang disclosed that 12 arrests have been made thus far in relation to the case, with over 8 million Hong Kong dollars ($1 million) in cash seized, along with assets worth 77 million HK$ ($9.8 million), including real estate and digital currency. These updates were reported by the South China Morning Post.
Tang emphasized the importance of apprehending the masterminds behind the JPEX crypto exchange fraud and considered their capture as a crucial step towards solving the case. The operators of the unauthorized crypto platform are accused of defrauding customers of millions of dollars. To prevent similar fraud in the future, Tang revealed that they are collaborating with regulators to establish specific measures.
Hong Kong’s local police have received 2,369 complaints from victims who lost their investments on the unregulated exchange. The estimated total monetary value of the fallout is around 1.4 billion HK$ ($178 million).
Among the 12 arrests made, three were employees of the JPEX Technical Support Company, while two were YouTubers named Chan Wing-yee and Chu Ka-fa.
The first signs of trouble emerged on September 15 when users began reporting difficulties in withdrawing funds from JPEX. As news of the withdrawal issues spread, the platform responded by significantly raising its withdrawal fees to 999 Tether, in an apparent attempt to dissuade users from withdrawing their funds. This decision came after receiving a warning from regulators.
The efforts to bring justice to the victims of the JPEX crypto exchange fraud highlight the commitment of Hong Kong’s authorities to safeguarding the interests of investors and combating fraudulent activities in the growing field of digital assets. By actively pursuing the ringleaders and working with regulators, they seek to establish greater trust and create a more secure environment for crypto investors.
It is crucial for governments and regulatory bodies worldwide to collaborate and implement robust measures to prevent financial fraud in the crypto space. By doing so, they can protect investors and maintain the integrity of the market, ultimately fostering its continued growth and development.