Sixteen charged in Hong Kong’s JPEX crypto fraud case
Hong Kong authorities have charged 16 people over the city’s biggest crypto fraud tied to the JPEX platform. Losses are estimated at HK$1.6 billion ($205.8 million), with more than 2,700 investors identified as victims.
Among those charged is former lawyer and influencer Joseph Lam, who officials say was one of the main promoters of the unlicensed platform. Police report that six suspects managed JPEX’s core operations, while others recruited investors and handled over-the-counter (OTC) transactions.
This is not Hong Kong’s first major crypto scam. Earlier this week, new fraud schemes emerged in the region under the name Ant Digital.
The charges include conspiracy to defraud, illegal fundraising, and money laundering. All defendants are expected to appear before Hong Kong’s Eastern Magistrates’ Court in the coming days.
JPEX presented itself as a legitimate crypto exchange, though it never held a license to operate in Hong Kong. Authorities say the platform misled users with fake investment products promising guaranteed returns.
JPEX advertising. Source: scmp.com
Since the investigation began in September 2023, more than 80 people have been arrested and HK$228 million seized. Following the case, Interpol issued red notices for three fugitives – Mok Tsun-ting, Chong Chung-cheong, and Kwok Ho-lun – who allegedly coordinated cross-border transactions and moved assets through offshore accounts.
The case marks the first time Hong Kong has applied the Anti–Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) to the crypto sector. Chief Executive John Lee said the government will tighten oversight of licensing for trading platforms and launch education campaigns to raise public awareness of crypto-related risks.
Hong Kong continues to pursue its goal of maintaining its position as Asia’s financial hub while expanding into digital assets. Last year, the city’s government even considered scrapping cryptocurrency taxes.
Author
Vincent Morello is a former professional poker player and a participant in the World Series of Poker (WSOP). He's been in crypto since 2017. Today, he's an active trader and market analyst, known for publishing in-depth market insights and trading commentary. He enjoys risk, cigars, and whiskey.
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