Hong Kong and Macau authorities have apprehended four more individuals in connection with the JPEX crypto exchange fraud. As of September 29, reports from Radio Television Hong Kong indicate that two Hong Kong residents linked to the JPEX case were taken into custody, media reports said.
Allegedly, they played a role in establishing accounts in Macau-based casinos to launder illicit funds. Concurrent with the arrests, law enforcement froze casino assets and seized cash totaling over 14 million Hong Kong dollars (HKD), equivalent to approximately $1.7 million.
The scandal unfolded when Hong Kong’s financial watchdog issued a warning against JPEX for operating in Hong Kong without the necessary licenses. In response to the warning, the exchange significantly increased its withdrawal fees, reaching nearly $1,000. Additionally, JPEX staff deserted their booths at the recent Token 2049 event in Singapore.
Throughout the investigation, authorities have detained several individuals connected to the case, including crypto influencers and JPEX employees. However, the masterminds behind the JPEX fraud scheme remain at large. To aid in their apprehension, Hong Kong police have sought the assistance of Interpol.
The JPEX scandal has emerged as one of the most substantial fraud cases in Hong Kong, with over 2300 complaints from victims and estimated losses reaching around $178 million. Christ Tang Ping-keung, Hong Kong’s secretary for security, has committed to seeking justice for the victims and will persist in pursuing those accountable.
