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Chris Tang Ping-keung, Hong Kong’s Secretary for Security, has pledged to deliver justice to the victims of the JPEX cryptocurrency exchange fraud, according to local media reports. During a press conference on Wednesday, September 27, the Security Bureau announced that police are actively pursuing the key operators behind JPEX, who orchestrated the country’s largest digital asset fraud.
Tang Ping-keung revealed at the conference that police have made 12 arrests in the case and seized over HK$8 million ($1 million) in cash, along with assets valued at HK$77 million ($9.8 million), including real estate and digital currencies, according to a report by the South China Morning Post.
Tang added that police are actively hunting for the ringleaders and emphasized that their capture is a major factor in resolving the case.
The operators of JPEX are accused of running an unauthorized cryptocurrency platform and defrauding customers of millions of dollars. Tang also informed the press that authorities are collaborating with regulators to implement specific measures to prevent similar frauds in the future.
Hong Kong police received 2,369 complaints from victims who lost their savings by investing in the unregulated exchange. The total monetary value of the fallout is estimated at approximately HK$1.4 billion ($178 million).
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Police have arrested 12 individuals in connection with the case, including three employees of JPEX Technical Support Company, as well as two YouTubers, Chan Wing-yee and Chu Ka-fa.
Related: Hong Kong securities regulator issues in-principle approval to HKVAX
Initial signs of trouble with JPEX emerged on September 15, when several users reported difficulties withdrawing their funds. As news of the withdrawal issues spread, the platform notoriously raised its withdrawal fees to 999 Tether to deter users from withdrawing funds following a warning from regulators.
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