Hong Kong Security Chief Vows Justice in JPEX Crypto Exchange Fraud

The Secretary for Security of Hong Kong, Chris Tang Ping-keung, has pledged to bring justice to those affected by the JPEX crypto exchange fraud in the country's largest digital asset fraud case, according to local media reports. Tang Ping-keung revealed during a press conference on Wednesday that the police have made 12 arrests and seized over 8 million Hong Kong dollars ($1 million) in cash, as well as assets worth 77 million HK$ ($9.8 million), including real estate and digital currency.

Active search for ringleaders

Tang Ping-keung stated that the search for the key operators behind the JPEX crypto exchange is ongoing and capturing the ringleaders is seen as a significant step towards resolving the case. The operators are accused of running an unauthorized crypto platform and defrauding customers of millions of dollars. Tang also mentioned that they are collaborating with regulators to establish measures that will prevent similar fraudulent activities in the future.

Thousands of complaints and massive financial fallout

Victims who lost money by investing in the unregulated JPEX exchange have filed a total of 2,369 complaints with local police in Hong Kong. The estimated monetary value of the fallout is approximately 1.4 billion HK$ ($178 million). The police have already made 12 arrests, including three employees of JPEX Technical Support Company and two YouTubers, Chan Wing-yee and Chu Ka-fa.

Trouble for JPEX begins

The first indications of trouble with the JPEX exchange emerged on September 15, when users encountered difficulties withdrawing funds. As news of withdrawal issues spread, the platform significantly increased its withdrawal fees to 999 Tether in an attempt to discourage users from withdrawing funds, following a warning from regulators.

Are your deposits at risk?

Investors have long been concerned about the safety of their funds deposited in crypto exchanges. The recent JPEX fraud case highlights the importance of understanding how exchanges handle customer deposits. Measures need to be put in place to ensure greater transparency and protection for investors against fraudulent activities.