Bilal Hüseynov 
A $178 Million Scam from an Exchange! Despite the arrest of 11 individuals, the masterminds behind the crypto exchange scandal known as JPEX referred to as one of the largest financial frauds in the history of Hong Kong, have managed to elude authorities.
According to a report from the South China Morning Post on September 23, the police have received more than 2,265 complaints from victims of the exchange, estimating the total financial loss to be around $178 million (1.4 billion Hong Kong dollars).
The complaints seem to be related to difficulties in withdrawing cryptocurrency from the platform. On September 15, the JPEX exchange raised its withdrawal fees to 999 Tether. Among those allegedly taken into custody for questioning is crypto influencer Joseph Lam Chok, who has been attempting to distance himself from the exchange publicly.
Additionally, police have arrested three employees of the JPEX Technical Support Company and two YouTubers, ChanWing-yee and Chu Ka-fai, who have a combined following of more than 200,000, all in connection with the scandal. Others sought or taken in for questioning include the company’s sole director, Kwok Ho-lun, a restaurant director, and three celebrities who had reportedly promoted JPEX in some form in the past. However, Hong Kong authorities have stated that the leaders of the operation remain at large. The police have indicated that the investigation is ongoing and further arrests are likely in the near future.
You might also like: The Latest Status of Bitcoin!
Local police have also sought assistance from Interpol and other international law enforcement agencies after identifying suspicious crypto transfers originating from the JPEX exchange. They have also requested that local telecommunications providers block access to the exchange’s website.
They Arrested at Token2049!
During the Token2049 conference in Singapore on September 13, the JPEX team allegedly abandoned their corporate booth after Hong Kong police arrested six employees on charges of fraud for operating an unlicensed crypto exchange. The JPEX scandal first came to light on September 13 when Hong Kong’s financial regulator informed the public that it had received over 1,000 complaints about the unregistered crypto exchange platform, with claims of losses totaling over $128 million (1 billion HK dollars). Subsequently, the exchange closed some of its interest-bearing products and raised its withdrawal fees to 999 USDT, attributing these actions to “maliciously” freezing liquidity by third-party market makers.
At the time, JPEX claimed to have attempted to register with relevant authorities and cited “unfair” treatment from regulatory bodies, including the Securities and Futures Commission (SFC). In a statement on September 20, the SFC revealed that JPEX had been operating without a license for virtual asset trading.
According to its official website, JPEX purported to be headquartered in Dubai and claimed to be licensed for crypto trading activities in the United States, Canada, and Australia. Founded in 2020, JPEX asserted that it oversaw assets totaling approximately $2 billion and aimed to be among the world’s top five crypto exchanges.