21-9-2023 (HONG KONG) The police have apprehended three additional male suspects today. These individuals, aged between 25 and 32, are now under detention for further investigation. With these latest arrests, the total number of individuals apprehended in connection with the case has reached 11. The police investigation remains ongoing, and it is possible that more arrests will follow.
According to the police, as of 5 pm on the 20th, a staggering 2,086 victims have reported cases related to the JPEX scam, involving an estimated amount of HK$1.3 billion. This makes it the largest fraud case ever recorded in Hong Kong. The authorities had previously arrested eight individuals, including JPEX employees and two social media influencers who actively promoted the platform. The arrested individuals, aged between 22 and 52, were identified as proprietors of over-the-counter virtual asset money changers and key personnel of certain cryptocurrency companies. All these individuals were charged with conspiracy to defraud.
Among those apprehended were social media influencers Joseph Lam Chok and Chan Hoi-yee, who had been actively endorsing JPEX.
Furthermore, the police have received a staggering 1,641 complaints regarding JPEX, with the total amount of money involved reaching HK$1.19 billion as of yesterday.
During the operation, law enforcement officers conducted searches at over 20 premises and over-the-counter shops, resulting in the seizure of HK$8 million in cash, luxury handbags, jewelry, and the freezing of deposits totaling HK$15 million. Additionally, three properties valued at HK$44 million were also seized.
In response to the public interest surrounding the suspicious practices of JPEX, the Securities and Futures Commission (SFC) issued a statement this evening. The SFC expressed deep regret over JPEX’s public disclosure of confidential correspondence between the SFC’s Enforcement Division and JPEX. Such disclosure violates the secrecy and confidentiality provisions of the Securities and Futures Ordinance (SFO) and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO).
The SFC clarified that JPEX has never approached them regarding any potential license application, and no entity within the JPEX group is licensed or has applied for a license to operate a virtual asset trading platform in Hong Kong. Consequently, there has been no communication between the SFC and JPEX regarding licensing matters. Based on subsequent information obtained, suspicions of fraud arose, leading the SFC to refer the matter to the police. As the investigations are ongoing, the SFC refrains from making further comments at this stage.
JPEX’s disclosure of confidential correspondence is in violation of section 378 of the SFO and section 76B of the AMLO, which require anyone assisting the SFC in a statutory inquiry or investigation to maintain secrecy and confidentiality regarding any information acquired.
Since then, the SFC and the Investor and Financial Education Council have jointly issued investor alerts on their respective websites, social media platforms, and through TV/radio channels on at least nine occasions, cautioning against engaging with unlicensed platforms and related malpractices. These alerts were issued until the public statement naming JPEX again on September 13, 2023.
In a surprising turn of events, JPEX has announced a significant initiative aimed at promoting and advancing blockchain technology. The company plans to establish its second Blockchain Building in Malaysia, marking a significant step in its commitment to the development of Web 3.0 cities in Asia.
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