The mastermind behind a major cryptocurrency trading scandal involving Hong Kong-based JPEX remains at large, despite authorities detaining 11 individuals for questioning in connection with the case. Victims of the exchange have lodged over 2,265 complaints, with estimated losses reaching nearly $178 million (HK $1.4 billion). These complaints primarily revolve around difficulties experienced when attempting to withdraw cryptocurrencies from the platform, compounded by JPEX's decision to raise the withdrawal fee to 999 Tether in September.
Among those questioned are cryptocurrency influencer Joseph Lam Chok, who has tried to distance himself from the exchange, three employees from JPEX's technical support provider, and two prominent YouTubers, Chen Yongyi and Zhu Jiahui, with a combined following of over 200,000.
Other figures sought for questioning include Kwok Hao Lun, the sole director of the company, a restaurant director, and three celebrities reportedly involved in promoting JPEX at some point. However, authorities confirm that the alleged ringleader remains at large.
Hong Kong police have sought assistance from international law enforcement agencies, including Interpol, after identifying suspicious cryptocurrency transfers linked to JPEX. Additionally, they have asked local telecommunications providers to block access to the exchange's website.
The JPEX scandal initially surfaced on September 13 when Hong Kong's financial regulator disclosed that it had received more than 1,000 complaints regarding unregistered cryptocurrency trading platforms, with reported losses exceeding $128 million (HK$1 billion).
JPEX, which claims Dubai as its headquarters and purports to hold licenses for cryptocurrency trading in the United States, Canada, and Australia, was operating without a virtual asset trading license. This revelation came from the China Securities Regulatory Commission in a statement issued on September 20. Founded in 2020, JPEX declared that it managed around $2 billion in assets and aspired to rank among the world's top five cryptocurrency exchanges.
