Hong Kong authorities arrest over 72 folks in reference to JPEX scandal

Hong Kong authorities have arrested greater than 70 folks concerned within the HK$1.6 billion JPEX cryptocurrency scandal that has rocked the city-state.

In accordance with the SCMP’s newest report, Police Commissioner Raymond Siu Chia Kui revealed that roughly HK$230 million (equal to roughly $29.37 million) in belongings have been frozen.

Hong Kong authorities crack down on JPEX

in update Mr Siu additionally revealed in paperwork supplied to the legislative physique that 72 folks had been arrested in reference to the incident, and about HK$228 million had been frozen.

Lawmakers have been additionally knowledgeable that police had acquired 2,636 calls relating to the incident, amounting to roughly HK$1.6 billion. Notably, a few of these beforehand detained embrace social media comparable to Zhang Win-yi, Joseph Lam Cheok, and Sheena Leung, who have been selling the buying and selling platform by way of ads and establishing their very own storefront outlets. Media influencers have been additionally included.

In response to questioning from MP Jonny Ng Kich-cheong, Mr Siu additional mentioned that police had recorded 6,330 circumstances of funding fraud each offline and on-line prior to now yr, leading to losses of over HK$5.93 billion. I emphasised what I did. Of those, 2,342 circumstances have been associated to digital currencies, with an quantity of roughly HK$3.16 billion.

JPEX was one of many largest cryptocurrency exchanges in Hong Kong, however collapsed in 2023 after allegations of Ponzi scheme operation and cash laundering surfaced. Afterwards, a number of folks related to JPEX have been arrested by the police.

In consequence, Hong Kong regulators have elevated scrutiny of crypto exchanges working within the area.

Regulatory scenario in Hong Kong

Cryptocurrency-related entities got a February 29 deadline to use for a digital asset buying and selling platform (VATP) license from the Securities and Futures Fee (SFC), after which the regulator introduced it could now not settle for license purposes. . All non-compliant platforms have been required to stop operations regionally.

A number of gamers withdrew earlier than the deadline. This included HKVAEX and Justin Solar’s HTX linked to Binance.

Nonetheless, Hong Kong maintains its place as a crypto-friendly area and goals to ascertain itself as a outstanding hub in Asia. Hong Kong regulators additionally authorised the primary wave of spot crypto change traded funds (ETFs) in April.