Approximately 70 people suspected of involvement in the JPEX cryptocurrency scandal, which resulted in a loss of HK$1.6 billion for Hong Kong, have been taken into custody by local law enforcement.
Based on the most recent information from SCMP, about HK$230 million, or roughly $29.37 million, in assets have been seized, as revealed by Police Commissioner Raymond Siu Chak-yee.
Hong Kong Authorities Crack Down on JPEX
In a recent report given to lawmakers, Siu disclosed that the total number of individuals taken into custody regarding this matter has increased to 72, and approximately HK$228 million is now being held in assets.
Lawmakers were given additional information: The police have handled 2,636 reports related to this case, totaling around HK$1.6 billion. It’s worth mentioning that some previously arrested individuals included social media personalities like Chan Wing-yee, Joseph Lam Chok, and Sheena Leung. They had advertised the trading platform and even set up their own shops for over-the-counter transactions.
In response to Johnny Ng Kit-chong’s question, Siu emphasized that the police had identified a total of 6,330 investment scams throughout the previous year, with combined losses amounting to over HK$5.93 billion. Among these cases, approximately 2,342 were related to cryptocurrency and resulted in losses of around HK$3.16 billion.
In 2023, JPEX, a prominent cryptocurrency exchange based in Hong Kong, crumbled following accusations of running a Ponzi scheme and money laundering schemes. Consequently, several people associated with JPEX were taken into custody by the authorities.
Due to recent developments, Hong Kong authorities have become more vigilant and intensified their monitoring of cryptocurrency trading platforms within their jurisdiction.
Hong Kong’s Regulatory Landscape
The Securities and Futures Commission (SFC) set a deadline of February 29th for cryptocurrency businesses to apply for a Virtual Asset Trading Platform (VATP) license. After this date, the SFC stopped accepting new applications and instructed non-compliant platforms to close their local operations.
Multiple participants withdrew from the event prior to the registration cut-off. Among them were HKVAEX, associated with Binance, and HTX led by Justin Sun.
In spite of various challenges, Hong Kong continues to be welcoming towards cryptocurrencies and aspires to become a major crypto hub in Asia. The local regulatory body has given the green light to the launch of the first set of spot Bitcoin and cryptocurrency exchange-traded funds (ETFs) in April.
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2024-04-20 19:28