The masterminds of the JPEX scandal remain at large with 11 suspects arrested ScrgruppEn

Authorities have eluded the masterminds behind Hong Kong’s alleged JPEX cryptocurrency exchange scandal — which some have referred to as the city’s biggest-ever financial scam — although 11 people have already been detained for questioning in connection with the case.

According to September 23 a report From the South China Morning Post Police have now received more than 2,265 complaints from stock market victims, with the total monetary value of the fallout estimated at about $178 million (HK$1.4 billion).

The complaints appear to be related to difficulties in withdrawing cryptocurrency from the platform. On September 15, the JPEX exchange raised the withdrawal fee to $999.

So far, the list of people detained for questioning includes cryptocurrency influencer Joseph Lam Chuk, who has made numerous attempts to publicly distance himself from the exchange.

Police also arrested three employees of technical support company JPEX, along with two YouTubers, Chan Wing Yi and Chu Ka Fai – who collectively have followers of more than 200,000 – in connection with the scandal.

Others who were sought or taken for questioning included the company’s sole director Kwok Ho Lun, a restaurant manager, and three celebrities who were reported to have promoted JPEX in some capacity in the Palestinian Authority.

But Hong Kong authorities said the leaders of the operation were still at large. Police added that the investigation is ongoing and more arrests are likely in the near future.

Local police also reportedly requested the assistance of Interpol and other international law enforcement agencies after they identified suspicious currency transfers being conducted from the JPEX exchange. The police have too required Local telecommunications providers block access to the stock exchange website.

During the Token2049 conference in Singapore on September 13, the JPEX team allegedly abandoned its corporate booth after Hong Kong police arrested six employees on fraud charges for operating an unlicensed cryptocurrency exchange.

Related: Troubled cryptocurrency exchange JPEX applies for de-registration in Australia

The JPEX scandal first came to the radar on September 13 when Hong Kong’s financial regulator notified the public that it had received more than 1,000 complaints about the unregistered cryptocurrency exchange, with claims of losses amounting to more than $128 million (HK$1 billion). .

The exchange later closed a number of its yielding products, raising withdrawal fees to $999, while blaming third-party market makers for “harmfully” freezing up liquidity.

At that time, she allegedly tried to register with the relevant authorities, citing “unfair” treatment from the Supreme Financial Supervision Committee.

On September 20th statementThe SFC revealed that JPEX was operating without a license to trade virtual assets.

According to the official website, JPEX claims to be headquartered in Dubai and claims to be licensed for cryptocurrency trading activities in the United States, Canada, and Australia. JPEX, founded in 2020, claimed to oversee assets worth about $2 billion and said its goal was to be listed on the world’s five largest cryptocurrency exchanges.

Deposit risks: What Do Cryptocurrency Exchanges Really Do With Your Money?

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