Hong Kong Charges 16 in JPEX Crypto Scandal
Hong Kong police have charged 16 people over the JPEX cryptocurrency scandal. The charges include fraud, money laundering, and inducing investments in unlicensed virtual assets. Among those charged is influencer Joseph Lam Chok.
Interpol issued Red Notices for three suspects believed to have fled Hong Kong. Investigators said JPEX promoted itself as a low-risk exchange. It used over-the-counter operators and social media influencers to attract investors. Later, investors found they could not withdraw their funds.
More than 2,700 victims lost an estimated HK$1.6 billion (US$205 million). This amount far exceeds losses from previous fintech scandals in Hong Kong.
JPEX’s Rise and Fall
JPEX started operating in 2020. The company placed billboards across Hong Kong promising “safe and easy” crypto profits. Regulators later confirmed JPEX was never licensed under the city’s virtual asset regime.
In 2023, withdrawal delays worsened. Fees spiked to 999 Tether, blocking access to funds. By September, police arrested 11 suspects, including YouTubers Chan Wing-yee and Chu Ka-fai. These promoters had encouraged their followers to invest in JPEX.
Authorities say JPEX operators laundered proceeds through many wallets. They converted crypto into cash, cars, and offshore accounts. The investigation has led to 80 arrests in total. Police have seized HK$228 million.
Chief Superintendent Ernest Wong Chun-yue called the investigation “highly complex.” It involved data analysis, digital forensics, and cooperation with the Securities and Futures Commission. The Commission had flagged JPEX as unregulated before.
Influencer Joseph Lam Faces Fraud Charges
Joseph Lam Chok, once a popular influencer, now faces fraud and money laundering charges. Lam promoted JPEX as a “safe and high-yield” crypto exchange to his followers. His endorsements helped attract many retail investors.
Police linked luxury purchases and unexplained cash flows to Lam and other promoters. His prosecution raises questions about influencer accountability in Hong Kong’s crypto market.
The case may set a legal precedent for prosecuting not only unlicensed exchanges but also social media promoters involved in crypto scams.
