The JPEX crypto scandal case, one of the largest cryptocurrency scams in Hong Kong’s history, has reached a crucial point as authorities report arrests and the recovery of significant assets. The scandal has left more than 2,300 victims and losses estimated at over $175 million.
The JPEX Crypto Scandal
In a press conference held on September 27, the Secretary for Security of Hong Kong, Chris Tang Ping-keung, vowed to bring justice to the victims of this large-scale digital asset fraud. Tang revealed substantial strides made in the ongoing investigation, with 12 arrests so far and assets worth more than $11 million recovered.
The JPEX crypto exchange was enmeshed in scandal after accusations of operating unlawfully and defrauding customers of millions of dollars. After authorities received numerous complaints about difficulties in withdrawing funds, they launched an investigation. During the press conference, Tang Ping-keung provided updates on the case, disclosing that Hong Kong police have seized more than 8 million HK$ ($1 million) in cash and 77 million HK$ ($9.8 million) worth of real estate and digital currency.
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Among those arrested are three employees of JPEX Technical Support Company and two YouTubers, Chan Wing-yee and Chu Ka-fa. The security chief’s office emphasized that authorities are still actively searching for the key operators behind the fraudulent exchange.
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The first indications of trouble for JPEX users began on September 15, when withdrawals became increasingly difficult. As the issues escalated, the platform infamously increased its withdrawal fees to 999 Tether in an attempt to deter users after receiving warnings from regulators.
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Disclaimer: Please note that this article serves solely for informational purposes. As such, it is not financial advice. We strongly advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.
