Hong Kong authorities freeze assets tied to JPEX crypto exchange amidst surge of 403 million Dollars fraud allegations

Crypto News– After a prolonged period of dormancy, the JPEX case in Hong Kong has reignited.

Hong Kong authorities freeze assets tied to JPEX crypto exchange amidst surge of 403 million Dollars fraud allegations

On April 18, Hong Kong police announced the freezing of assets exceeding US$29 million linked to JPEX, a cryptocurrency exchange that crumbled back in September.

In addition to asset freezing, law enforcement officials have apprehended more individuals, swelling the tally of employees and social media influencers tied to JPEX to 72.

Police Commissioner Raymond Siu informed lawmakers last week that over 2,600 individuals suffered losses totaling an estimated US$206 million due to their involvement with JPEX.

Authorities have yet to ascertain the identity of the company or individuals behind the defunct exchange, let alone their whereabouts, leading to a lack of charges being filed.

This challenging case highlights the difficulties in regulating Hong Kong’s dynamic crypto landscape. In 2023, crypto-related fraud contributed to over half of the US$764 million in losses in both online and offline investments, as reported by Commissioner Siu.

The Securities and Futures Commission (SFC) of Hong Kong has taken action against several prominent figures who endorsed JPEX, including influencer Joseph Lam and Feng Shui expert Clement Chan.

Additionally, another individual, whose identity remains undisclosed, was caught attempting to destroy documents in a bathtub using bleach.

In the wake of the SFC’s investigation launched last year, JPEX staff deserted their booth at a cryptocurrency conference held in Singapore.