- Hong Kong security chief has cracked the whip on the JPEX exchange.
- More arrests have been made, and assets seized in connection with the investigation into the exchange.
- The security chief lauded SFC’s collaboration with the police force to crack down on crypto-related crimes.
Scandal-hit crypto exchange JPEX has irked multiple Hong Kong law enforcement agencies and government officials, with the latest crackdown sentiments coming from the region’s security minister.
The pronouncement by the security Chief follows a series of other enforcement actions against JPEX within the last week, including the police directive that instructed telecom companies to block users from accessing the exchange’s website and mobile app.
Hunting Down JPEX Leader
The Secretary for Security, Chris Tang Ping-Keung, announced on September 27 that the police force had shifted its focus to locating the whereabouts of the “ringleader” of the JPEX exchange, terming the search as a major factor in the investigation.
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Ping-Keung affirmed that the police would “by all means hold the culprits accountable for their crimes,” noting that the force was actively engaging relevant individuals connected to the alleged conspiracy to defraud case, including celebrities who had partnered with the exchange.
Per Ping-Keung’s press statement, 2,392 victims have filed complaints about the JPEX exchange with the police, leading to the arrest of 12 individuals and the seizure of assets worth HK$77 million and over HK$8 million in cash.
The security chief vowed to continue supporting the collaboration between the Securities and Futures Commission (SFC) and the police force to curb more fraud cases by strengthening sensitization on safe trading practices.
SFC Collaboration with the Police
Before June 2023, the SFC had no legal powers to take action on crypto-related firms that flouted its guidelines and regulations; hence, it often resorted to “warning the public” against unscrupulous players.
SFC’s latest collaboration with the police force to hunt down criminal elements within JPEX will likely set a precedent for a more proactive crypto regime that would crack down on advertising loopholes exchanges exploit to lure investors into dubious promises of gaining as high as 20% in annual returns.
Stay updated on Hong Kong’s legislative changes on crypto following the JPEX scandal:
Hong Kong Slams Brakes on Crypto Following JPEX Scandal
Read why FTX sued its Hong Kong affiliate employees:
FTX Sues Hong Kong Affiliate Employees in $157M Lawsuit
