Hong Kong and Macau authorities recently announced arrests concerning the JPEX crypto exchange fraud case as they are searching for additional suspects.
Radio Television Hong Kong reported on September 29 that two Hong Kong men implicated in the JPEX case were arrested. According to the report, the two created accounts in Macau-based casinos to allegedly launder illicit funds.
Upon capturing the suspects, the police suspended casino assets and seized over 14 million Hong Kong dollars (HKD), or approximately $1.7 million.
South China Morning Post also reported that two additional people were detained; one allegedly discovered destroying potential evidence with paper shredders and bleach in an apartment bathtub.
That increases the total number of suspects arrested to 18. Additionally, the most recent police operation seized 8.7 million Hong Kong dollars ($1.1 million) in cash and gold from three apartments.
The scandal began when Hong Kong’s financial regulator warned JPEX for promoting its services in Hong Kong without the required licenses. The exchange increased its withdrawal fees to nearly $1,000 in response to the warning, and its staff abandoned their kiosks at the recent Token 2049 event in Singapore.
Since the investigation began, the authorities have detained several individuals associated with the case, including crypto influencers and JPEX employees. However, the perpetrators of the JPEX fraud scandal remain at large, and the Hong Kong police have asked Interpol for assistance in locating them.
The JPEX scandal has reportedly become one of the most significant fraud instances in Hong Kong, with over 2300 victim complaints and losses of approximately $178 million. Christ Tang Ping-keung, Hong Kong’s secretary for security, has vowed to bring justice to the victims and will continue to pursue those guilty.
