Hong Kong police arrest 80 suspects in a $206 million JPEX cryptocurrency fraud scheme that used influencers and fake accounts to lure investors.
Hong Kong police have arrested dozens of suspects linked to one of the city’s biggest cryptocurrency fraud cases, the HK$1.6 billion ($206 million) JPEX exchange scandal.
Authorities have been investigating JPEX since September 2023, after the city’s Securities and Futures Commission accused the platform of carrying out “suspicious” activities and promoting unlicensed investment products.
Police said Wednesday that 80 people have so far been arrested in connection with the case, with 16 already charged with offences including conspiracy to defraud. The rest remain under investigation.
Officials described the JPEX case as one of Hong Kong’s largest-ever fraud schemes, both in terms of victims and financial losses. It also marks the city’s first prosecution for fraudulently inducing investment in virtual assets since new crypto regulations came into force in 2023.
According to the police, at least 14 individuals have been identified as core members of the network. Over 2,700 complaints related to the case have been received, with total losses reaching HK$1.6 billion ($206 million). Authorities have so far frozen assets worth more than HK$200 million.
Chief Superintendent Ernest Wong said investigators “cannot eliminate the chance that we will prosecute or further arrest more people in the future.”
Two masterminds and one core member are believed to have fled overseas. Interpol red notices have been issued for their arrest.
JPEX reportedly attracted investors through aggressive marketing campaigns featuring promises of high returns and endorsements by social media influencers. Police said the platform later transferred the deposited funds into cryptocurrency wallets and laundered the assets.
Among those arrested are several online influencers who promoted the scheme and individuals accused of operating dummy bank accounts used in the transactions.
About The Author
