Hong Kong and Macau police seize more than $2.8 million linked to JPX scam

Authorities in Hong Kong and Macau have announced that they have made arrests in connection with the JPX cryptocurrency exchange scam and are currently pursuing several other suspects.

On September 29, local media Radio Television Hong Kong reported the arrest of two Hong Kong people involved in the JPEX case. According to the report, the two were responsible for creating accounts at Macau-based casinos that allegedly funneled illicit funds. More than 14 million Hong Kong dollars ($1.7 million) in cash were seized after police seized casino assets after the suspects were arrested.

Meanwhile, another local publication, the South China Morning Post, reported that two more people were arrested after a suspect was allegedly found destroying evidence in an apartment bathroom with paper towels and paper clips. This brings the total number of suspects arrested to 18. In addition, 8.7 million HKD ($1.1 million) in cash and gold were seized by police in three apartments.

Related: JPEX blames partners for ‘maliciously' frozen funds, causing liquidity crisis.

The scandal began when Hong Kong's financial regulator issued a warning against JPEX promoting its services in Hong Kong without proper licenses. Following the warning, the exchange raised its eviction fee to about $1,000, with staff abandoning their booths at the recent Token 2049 event in Singapore.

Token 2049 was held in Singapore from September 13 to 14, and the exchange JPEX attracted a large crowd on the first day. Less than a day later, Hong Kong's Securities and Futures Commission issued a warning, accusing the exchange JPEX of falsely claiming to be licensed in Hong Kong. As the news broke, the JPEX booth at Token 2049 was completely empty, and the booth became an accommodation for visitors. #jpex #token2049 pic.twitter.com/9ixRfu3wAo

— Huidu (@huidu_io) September 20, 2023

Since the beginning of the case, authorities have arrested various figures related to the case, including JPEX influencers and employees. But the main culprits behind the JPX scam have yet to be found and Hong Kong police have sought Interpol's help to track down the suspects.

According to officials, the JPX scandal has become one of the biggest frauds in Hong Kong, with more than 2,300 complaints from victims and losses of around $178 million. Hong Kong's Security Secretary Chris Tang Ping-keung has promised justice for the victims and is pursuing the victims.

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