Hong Kong's Secretary for Security, Tang Ping-keung, has pledged to bring those responsible for the JPEX cryptocurrency exchange fraud to justice. During a press conference on September 27, the Office of the Chief of Security stated that the police are actively searching for the primary operator behind the JPEX cryptocurrency exchange, which orchestrated one of the most significant digital asset frauds in the country.
Deng Bingqiang, speaking at the press conference, revealed that the police have arrested 12 individuals in connection with this case and have confiscated over HK$8 million (US$1 million) in cash, as well as assets valued at HK$77 million (US$9.8 million), including real estate and digital currencies, according to the South China Morning Post.
Tang emphasized that the police are actively pursuing the main culprits in the case, stating that their apprehension is a crucial element in solving the case.
The operator of the JPEX cryptocurrency exchange has been accused of operating an unauthorized cryptocurrency platform and defrauding customers of millions of dollars. Tang also informed the media that they are collaborating with national regulators to develop specific measures to prevent such fraud in the future.
Local authorities in Hong Kong have received 2,369 complaints from victims who lost their investments in unregulated exchanges. The total monetary value of the incident is estimated to be approximately HK$1.4 billion (US$178 million).
In connection with the case, the police have arrested 12 individuals, including three employees of a technical support company associated with JPEX and two YouTubers, Chen Yongyi and Zhu Jiafa. The first signs of trouble related to JPEX emerged on September 15 when some users reported difficulties in withdrawing their funds. As reports of withdrawal issues escalated, the platform raised withdrawal fees to 999 Tether in an attempt to discourage users from withdrawing funds, following a warning from regulators.
