In a recent development, authorities in Hong Kong and Macau have apprehended four additional individuals in connection with the ongoing JPEX cryptocurrency exchange case, as reported by the South China Morning Post on Friday.
Out of these four arrests, two were made in Hong Kong, while Macau Police carried out the remaining two. This increases the total number of arrests related to the scandal to eighteen, which includes several individuals believed to have close ties to the core operations of JPEX.
These developments coincide with a warning issued by the Securities and Futures Commission (SFC) concerning another unlicensed virtual asset trading platform, FUBT Exchange, which is suspected to be linked to JPEX. The SFC revealed that FUBT Exchange had provided a fictitious Hong Kong phone number in an attempt to create the impression of a presence in the city.
FUBT Exchange was added to the list of suspicious virtual asset trading platforms by the SFC on September 22, as indicated on the commission’s website. Subsequent investigations indicate that the platform’s website is no longer accessible.
Further Arrests and Cash Seizures Uncovered in JPEX Crypto Exchange Investigation
According to the SCMP report, two individuals aged 29 were detained in Macau, where authorities seized HK$6.5 million (US$830,390) in cash and valuables. Additionally, HK$8.2 million has been frozen in their casino accounts. Macau police identified these individuals as owners of cash-for-crypto shops.
Hong Kong police carried out additional arrests, detaining two 28-year-old men. One of them, with the surname Tang, was found in an apartment along with shredded documents treated with bleach in a bathtub.
Furthermore, another suspect named Wong was apprehended as authorities conducted searches in two apartments that contained a substantial volume of documents. During the search, unauthorized Visa cards bearing the label “JPEX” were also discovered.
These recent arrests bring the total number of individuals detained in connection with the expanding JPEX case to 18, all of whom are Hong Kong residents.
Hong Kong Assistant Police Commissioner Chung Wing-man stated that investigators are close to identifying a key figure in the operations of JPEX, though they are currently uncertain whether the mastermind behind the fraud is an individual or part of a group.
Authorities also indicated that more suspects are likely linked to the case, with some believed to be located outside Hong Kong. They are actively aware of their whereabouts and are prepared to collaborate with international authorities to secure their arrests.
Authorities Seize HK$24 Million in Assets, Including Cryptocurrency, in Latest JPEX Crypto Exchange Scandal Probe
During the recent joint operation conducted in Hong Kong and Macau, authorities confiscated assets totaling HK$24 million, including luxury watches and gold bars.
The city’s police force further disclosed that they had also seized cryptocurrency valued at HK$5 million associated with JPEX. However, tracing these digital assets has proven to be challenging due to the high volume of transactions and their inherent anonymity.
The JPEX scandal unfolded earlier this month when the Hong Kong Securities and Futures Commission (SFC) accused the exchange of operating without a license. Subsequently, regulatory authorities issued a public notice warning the people of Hong Kong that the exchange lacked the necessary authorization to operate in the country.
Related: Hong Kong to Publish Cryptocurrency License Applicants List!
A few days later, JPEX and its operators were suspected of defrauding over 2,400 individuals of nearly $200 million. The Hong Kong Police received reports from more than 2,417 individuals claiming losses totaling over 1.5 billion Hong Kong dollars ($191.6 million) on the platform.
However, JPEX has raised concerns about what it perceives as unfair treatment by regulators, fearing that it could hinder Hong Kong’s ambitions to become a cryptocurrency hub. JPEX, purportedly based in Dubai, continues to operate, albeit with restricted access from Hong Kong, believed to be due to a directive from the police.
In response, the regulatory body has released a list of exchange firms that have applied for a license under the new regulatory framework implemented in June.