By Mark Hunter
20 hours agoMon Oct 09 2023 08:38:11
Reading Time: 2 minutes
- Hong Kong police have arrested seven more individuals in connection with the JPEX scandal
- Last week’s arrests take the total to 26 over the $191 million criminal enterprise
- The investigation is ongoing, with over 2,500 complaints received so far
Hong Kong police have made six additional arrests in connection with the $191 million financial scandal linked to the cryptocurrency trading platform JPEX, bringing the total number of arrests to 26. Among those arrested on Thursday were Chan Siu-lung, CEO of CryptoPARD; an ex-director named Li; employees from Coingaroo and Tung Club; and a member of an alleged fraud syndicate associated with JPEX. These individuals, aged 23 to 54, were apprehended on suspicion of conspiracy to defraud and were held for questioning. The investigation is ongoing, and further arrests are possible.
TV Star Arrested in Connection with JPEX Scandal
The JPEX scandal has rocked the crypto industry in Hong Kong. Earlier in the week, Hong Kong police arrested television star Cheng Chun-hei and another individual, seizing their Porsches believed to have been purchased with illicit proceeds.
Among the previously arrested individuals were social media influencers who had promoted the trading platform and established their own OTC shops. Additionally, two individuals were arrested in Macau with $830,000 in cash and valuables seized, while $1.4 million in their casino accounts was frozen.
2,528 Complaints
As of last Thursday, police had received 2,528 complaints related to the JPEX platform, with $191 million thought lost by investors. The police force has frozen approximately $12.7 million in bank accounts and assets, including properties and luxury vehicles, associated with the JPEX scandal.
It has sought Interpol’s assistance in freezing assets coming out of JPEX, while the city’s securities watchdog established a working group alongside the police to collaborate on investigating illegal activities related to virtual asset trading platforms.
JPEX Planning for the Future
JPEX has denied allegations that it is running an illegal operation and has imposed high withdrawal fees on users while pursuing a plan to convert user assets into shareholder dividends claimable in two years. The company recently announced that a referendum with users resulted in 68% in favor of the “DAO Stakeholders Dividend Plan,” under which investors would convert their funds into stakeholder dividends at a 1:1 ratio.
Users adding fresh assets under the plan could receive double the payout. Dividends would take various forms, including listing fees of new platform tokens and trading fees generated by spot and derivative products. The “DAO scheme” has raised questions about the company’s legal obligations, but little further information has been forthcoming.
