Authorities in Hong Kong and Macau have detained four further suspects involved in the JPEX cryptocurrency scandal.
In Brief
Law enforcement officials in Hong Kong and Macau have made further arrests in connection with the JPEX crypto exchange, bringing the total number of detained individuals to 18.
As reported earlier, today the authorities have detained four more people who are considered 'relatively connected to the core' operations of JPEX. SCMP report .
In Macau, local authorities have apprehended two residents from Hong Kong, confiscating over HK$6.5 million (equivalent to about US $830,390) in cash and other valuable assets, alongside freezing HK$8.2 million from their casino accounts. One of the suspects was allegedly caught trying to destroy evidence using shredders and bleach.
With these recent arrests, the total number of detainees has climbed to 18. Furthermore, police have seized a total of HK$24 million (approximately $3 million) in assets. Authorities are actively on the lookout for other individuals involved, as stated in reports.
During a news briefing today, Chung Wing-man, the assistant police commissioner, revealed that this syndicate operates on a large scale, with potential financial losses estimated to exceed HK$1.5 billion.
On September 18, influencer Joseph Lam was taken into custody by Hong Kong authorities following a complaint directed to them by the China Securities Regulatory Commission concerning JPEX, which claimed that those operating the exchange had engaged in fraudulent practices.
Before the latest arrests, several influencers in Hong Kong, including Chan Wing-yee and Sheena Leung, were also detained for setting up their own over-the-counter cryptocurrency exchange operations.
The Ongoing JPEX Saga
On September 13, the Securities and Futures Commission (SFC) of Hong Kong issued a public warning highlighting JPEX’s suspicious business strategies, indicating that the platform was heavily promoting its offerings to the public via online influencers and over-the-counter trading entities.
The SFC pointed out that JPEX, along with its associated entities, has neither secured the necessary licenses nor applied to be recognized as a regulated entity within Hong Kong’s virtual asset trading sector.
Blockchain data analysis company reported Reports indicate that the wallet address of JPEX has experienced multiple incoming transactions of high-risk funds over the last 20 months, which are suspected to be connected to online gambling and money laundering activities.
According to SCMP, the exchange recorded a suspicious outflow of 7.21 million USDT from JPEX wallets between September 13 and September 20, raising alarm among users and sparking fears that the platform may be facing a rug pull situation.
In response to the case, the SFC said The company has announced plans to release a directory of licensed virtual asset trading platforms.
Although JPEX claims to be headquartered in Dubai, its services have faced restrictions from users in Hong Kong.
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