Police Make 12 Arrests, Seize $1 Million in Cash and $9.8 Million in Assets in JPEX Case

The JPEX scandal has shaken Hong Kong’s cryptocurrency space, and law enforcement is making strides to combat the illicit operations. 

Recent developments have seen the police make 12 arrests, a significant leap towards dismantling the complex network associated with the JPEX case. 

The alleged losses in virtual assets tied to the JPEX saga have soared to an alarming HK$1.5 billion (US$191.9 million), showing the gravity of the situation.

The 12th suspect linked to the cryptocurrency platform JPEX was apprehended in a recent operation. The individual identified is Wong Sheung-yin, a 23-year-old director affiliated with the over-the-counter cryptocurrency exchange store Money Lupin. 

This arrest closely follows Chief Executive John Lee Ka-chiu’s acknowledgement of a pivotal move by the Securities and Futures Commission (SFC) to disclose pending license applications by virtual asset trading platforms.

“This clear information will assist investors to make decisions as to what they should do when they consider making an investment.” 

He remarked.

Lee pointed out that one of the government’s positions on virtual assets trading was to ensure information disseminated would be transparent and as straightforward as possible.

“But I must repeat, investors’ interests will be best protected if they invest on platforms which have been licensed. That means these platforms will be properly regulated, there will be proper risk control and proper standards that they must fulfill,”

he warned.

The arrests and the heightened vigilance from regulatory bodies signify a collective effort to enhance transparency and accountability within the cryptocurrency sector. 

Chief Executive John Lee Ka-chiu emphasized the importance of providing clear information to investors, enabling them to make informed investment decisions.

While the crackdown on illicit activities is well underway, the cryptocurrency landscape in Hong Kong remains dynamic, posing challenges for regulatory bodies and prospective operators. 

The recent revelation of pending license applications by virtual asset trading platforms has stirred the industry, prompting organizations to prioritize compliance and regulatory adherence.

Louis Li Sze-chung, a blockchain expert and adviser to tech start-up association 852Web3, said:

“People feel that Hong Kong is a place of traditional finance that has been uncomfortable with virtual assets, so this attitude change has been closely watched globally.”

But that change also presented challenges for those seeking a license, he said, as one criterion was appointing “responsible officers” with “relevant industry experience”. He noted that such professionals were scarce in a city that was new to regulating virtual assets.

The shifting stance of Hong Kong towards virtual assets and the efforts to regulate the crypto industry has attracted global attention. The absence of major industry players from the SFC’s list of licensed platforms, despite their publicized application preparations, has gained attention.

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