JPEX Scandal: Masterminds Still at Large as 11 Suspects Taken into Custody
The JPEX scandal, dubbed the largest financial fraud in Hong Kong’s history, continues to unfold as authorities struggle to apprehend the masterminds behind the alleged crypto exchange scam. Despite taking 11 individuals into custody for questioning, the main culprits remain elusive. According to a report from the South China Morning Post, more than 2,265 complaints have been filed by victims of the JPEX exchange, with an estimated total loss of around $178 million.
The JPEX Scandal: A Closer Look
The JPEX exchange has come under scrutiny for its failure to facilitate cryptocurrency withdrawals, leaving users unable to access their funds. On September 15, the platform raised its withdrawal fees to 999 USDT, exacerbating the frustrations of its users. Numerous individuals, including crypto influencer Joseph Lam Chok, have been taken into custody for their alleged involvement in the scandal.
In addition to Lam Chok, three employees of the JPEX Technical Support Company, and two YouTubers, Chan Wing-yee and Chu Ka-fai, have also been arrested. These YouTubers, with a combined following of over 200,000, were implicated in promoting the fraudulent exchange. Furthermore, the authorities have sought or interrogated the company’s director, Kwok Ho-lun, a restaurant director, and three celebrities associated with JPEX.
Authorities on the Hunt
While several individuals have been brought in for questioning, the ringleaders behind the JPEX scandal remain at large. Hong Kong’s law enforcement agencies continue their investigation and anticipate making further arrests in the near future. Police have enlisted the help of Interpol and other international agencies to track suspicious crypto transfers associated with the exchange. Additionally, they have requested that local telecommunications providers block access to the JPEX website.
The unfolding of events surrounding the JPEX scandal took an unexpected turn during the Token2049 conference in Singapore on September 13. The JPEX team reportedly abandoned their corporate booth after six of their employees were arrested for fraud related to operating an unlicensed crypto exchange.
JPEX: Unlicensed and Unauthorized
The JPEX scandal first came to light on September 13 when Hong Kong’s financial regulator announced the receipt of over 1,000 complaints regarding the unregistered crypto exchange platform. Losses incurred by victims exceeded $128 million. Following public backlash, the exchange closed some of its yield-bearing products and hiked its withdrawal fees to 999 USDT, claiming that third-party market-makers had maliciously disrupted liquidity.
In a statement on September 20, the Securities and Futures Commission (SFC) revealed that JPEX had been operating without a license for virtual asset trading. Despite purporting to be headquartered in Dubai and claiming licenses in several countries, including the United States, Canada, and Australia, JPEX was operating outside the boundaries of the law.
Editor’s Notes
The JPEX scandal serves as a reminder of the risks associated with unregulated cryptocurrency exchanges. Users should exercise caution and conduct thorough research before entrusting their funds to any platform. Stay informed about the latest developments in the crypto world by visiting Uber Crypto News.
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