Hong Kong Police Act Swiftly Towards $403m Crypto Trade Fraud

• Hong Kong police freeze property totaling over US$29 million linked to JPEX.
• 72 people have been arrested regarding JPEX.
• Regardless of ongoing investigations, the identities and places of these behind JPEX stay unverified.

After months of inactivity, Hong Kong police authorities have begun to freeze property totaling over US$29 million related to JPEX, a crypto trade that collapsed in September 2023. 

In one other swift transfer, the police made additional arrests, bringing the whole variety of people related to JPEX, together with staff and social media influencers, to 72. In line with Police Commissioner Raymond Siu, greater than 2,600 people suffered losses estimated to be US$206 million attributable to their involvement with JPEX. 

Nonetheless, the authorities haven’t verified the id or location of the people or entities behind the defunct trade. Consequently, no costs have been filed in reference to the case. Siu revealed that again in 2023, crypto-related fraudulent actions accounted for over half of the US$764 million funding losses.

The Securities and Futures Fee (SFC) of Hong Kong has taken crucial steps to deal with the problem by apprehending figures linked to JPEX, together with influencer Joseph Lam and Feng Shui knowledgeable Clement Chan. Likewise, authorities caught an unidentified suspect making an attempt to destroy paperwork in a tub utilizing bleach.

Moreover, the SFC has taken steps to curb lawmakers’ criticisms by itemizing platforms searching for licenses and people deemed suspicious. Nonetheless, figuring out suspicious platforms usually follows consumer complaints and monetary losses, indicating a delay in regulatory motion. 

One such case is BitForex, a crypto trade platform that purports to be Hong Kong-based. In late February, roughly US$57 million was withdrawn from its wallets, weeks after CEO Jason Luo introduced his resignation.

Afterward, token tasks related to BitForex claimed to have contacted Luo, who disclosed he was being probed in mainland China. Nonetheless, these claims await official affirmation.

Hong Kong authorities have been displaying messages towards scams in public locations, together with college restrooms, residential buildings, and metro stations. As well as, cell networks like China Cell HK problem pop-up alerts cautioning customers about potential rip-off calls from worldwide numbers.