The Hong Kong police have arrested seven more suspects and seized another luxury car in connection with the JPEX crypto fraud scandal, which has allegedly caused losses of over $204 million to investors.
The JPEX Saga Continues to Unfold
JPEX is a crypto exchange that was accused of operating without a license and facilitating suspicious activities. The police launched an investigation in August after receiving complaints from investors who claimed they were unable to withdraw their funds from the platform.
Since then, the police have arrested 27 people, including the CEO and a former director of an over-the-counter (OTC) firm called CryptoPARD, which was allegedly involved in the scheme. The police have also confiscated 50 vehicles, including Lamborghini, Porsches, Rolls Royce, and Bentleys, as well as luxury goods such as wine, jewelry, and collectibles.
In the evening of the same day, reports emerged from local news outlets about the arrest of a 31-year-old individual, identified only by the name ‘Mok’. While it is suggested that Mok has ties to JPEX, it is clarified that he was not employed by any over-the-counter (OTC) firm.
The JPEX scandal has prompted Hong Kong financial regulators to tighten the rules for crypto exchanges and set up a task force to monitor and crack down on any other illegal activities in the sector. The regulators have warned the public to be cautious when dealing with virtual assets and to verify the legitimacy of the platforms they use.
JPEX has denied all the allegations and said it could relaunch as a decentralized autonomous organization (DAO) after the probe. However, the police have urged the victims to come forward and provide evidence to support their claims.
The JPEX case is one of the largest crypto frauds to hit the crypto community this year, and sadly, it has ignited Hong Kong authorities to tighten crypto regulations.
